House dropped value

[warmmfeet]

Sorry if this isn't the correct section for this.

According to Zoopla out house value dropped 3% in a month. That's a bit more than the standard / expected drop, can anyone suggest why?

DH thinks it's because we have a few houses on our road that have been up for sale for a few months and not sold, could that be it? Nothing else changed.

I'd imagine Zoopla uses either or both of comparable properties actually sold and data from agents re deals done but I may be wrong.

I personally don’t think Zoopla is a particularly accurate tool. Especially if it’s a long time since a property was last sold. It can give you a rough guide over a longer time frame on how much property prices have risen (or decreased) in a particular area.
I suspect the recent decrease is in response to how the market is in your area and the state of house sale prices across the country because of higher interest rates. This Autumn and Winter has been particularly sluggish because of the state of the economy, in Spring there is usually an upturn in the market but I doubt that will be showing on Zoopla yet.
Don’t read too much into month to month fluctuations- look at longer term changes instead.

It only bases its data on the price houses are sold for and doesn’t reference properties that are on the market and not sold. It will be looking at properties sold from about 3 to 6 months ago now appearing on land registry records.
Prices have been steadily decreasing since their peak in April 23, with some monthly fluctuations.

I don’t find Zoopla accurate, my house has an estimated value of 200k more than it’s worth.

Are you looking at selling? If not what difference does it make?

Thanks everyone. That's v interesting and helpful.

No @Wolfpa but looking at borrowing a little extra mortgage for renovations, which let to me looking at Zoopla to see the estimated value as that was one of the questions on our mortgage deed form. I was surprised it seemed to have a sudden drop like that and just curious how it works.

I've just been having a nose at our current house and our previous house (bought and sold 2022) and since then the Zoopla estimate has varied on both by about 3-5%. Currently apparently the place we sold is 3% down (but they have the number of beds wrong) and the house we bought is up by 3%! Which is interesting as the the House Price Index our mortgage people use reckons we've lost about 10% in value on the place we bought.

Ultimately, who knows unless we tried to sell!

Zoopla is wildly inaccurate, I wouldn't bother with it. We've jsut spent 75k doing our house up, new kitchen, bathroom, floors, the works. Zoopla doesn't know that!

Nobody trusts Zoopla to be accurate, honestly dont worry

Well we've now had a surveyor round this morning as part of the mortgage offer checks and it was valued at 15k more than Zoopla suggested. So I guess everyone is right, Zoopla is not accurate.

Zoopla is well known to be wildly inaccurate