Just been told that the market is cooling in SW London

Halle71

We are selling (Mitcham/Tooting borders) and buying (Tooting) in SW Lonbdon. Our buyer dropped out last week after failing to meet new mortgage criteria and I have spoken to our EA now it is back on the market and they (KFH who pretty much have a monopoly in our area) have told me that the market is cooling. Fewer buyers, houses being reduced....

On the whole I'm not that bothered, but it's a bit of a bummer for us because we put an offer on the house we hope to buy two months ago when we got the asking price for ours and now the EA is advising we reduce our price. I still think we could achieve the asking price but not with the time pressure we have on our purchase.

Anybody else have any info/opinion on this?

theEnd

Stuff is still coming on a ridiculous prices. Must fall soon.
Whole area massively overpriced.

observingthedebate

This is my area too. Which branch of KFH are you dealing with?

The problem is the ridiculous asking we are seeing. It makes it difficult for FTB's to even try to get on.

What type of proprty are you looking at?

Halle71

Tooting Broadway.
We're selling a 4 bed in Mitcham/Tooting borders and buying (fingers crossed) a bigger 4 bed with potential to extend in 'proper' Tooting.
Both on at the same asking price - ours is a bit smaller but immaculate, whereas our purchase needs top to toe tart up (vacant for over a year) and to balance the upstairs it needs a kitchen extension.

In March we did the deal on both within 48 hours of signing EA contract.

movilogo

Looks like new mortgage rule is doing its stuff

observingthedebate

I am selling not buying at the moment and more in the Tooting Bec end.

I think the problem is that EA's have started to price Tooting (more bec than broadway) broadly in line with Balham and this is extremely aggressive. They have also timed it wrong with the introduction of MMR.

I think the agent are now regretting it and talking the market down so to convince sellers to reduce their asking. A pretty stupid tactic I think but they have to do it when they call the market wrong.

I don't know how real the cooling is. Certainly at the current prices Tooting is very overpriced. I would not buy there at current asking prices.

Halle71

To be fair I was always worried about our buyers - FTBs taking out a £540k mortgage.

But yes, even though we have 24% LTV and are only borrowing 1 x our joint annual income, the new mortgage legislation is driving me mental.
'Do you children have expensive hobbies?'. Erm, if they're lucky we might buy them an ice cream in the park and we just bought Frozen on DVD....

observingthedebate

Have the EA also advised to reduce the offer on the property you are buying? Would seem fairer that way.

Conrad

Affordability is I think reaching it's limits in terms of what lenders will permit so maybe the market might calm a little, hard to say.

theEnd

Some of the asking prices are insane:
http://www.rightmove.co.uk/property-for-sale/property-29967693.html

Average 2 bed. I paid £360k for something similar, bit further from the station last year. £450-500k maybe.

observingthedebate

theEnd wrote: »

Some of the asking prices are insane:
http://www.rightmove.co.uk/property-for-sale/property-29967693.html

Average 2 bed. I paid £360k for something similar, bit further from the station last year. £450-500k maybe.

Yes insane! That one is Under Offer as well!

As you know that is not in Balham but priced as if...worst road of the Heaver conservation area.

Look at Franciscan, Moring, Lucien and Mantilla roads...world has gone mad.