Just been told that the market is cooling in SW London

Halle71

Our buyers came back to us and said their lender refused a new valuation but, if we dropped our asking price by £20k, they had enough deposit to carry on with the purchase.

So, in March 2014 we received an asking price offer of £650k within 24 hours, lost our buyers and accepted £640k to enable us to keep our purchase and now we have dropped to £620k which is the lowest we can go. I don't feel too unhappy with this in the current market (although an extra £30k would have been useful!).

mobfant

theEnd wrote: »

Will be interesting to see the next few months of the rightmove index. Initial asking prices are down considerably.

Might not show in LR index as I'm not sure the crazy asking prices of late '13 / early '14 were ever achieved.

But a definite, substantial fall in asking prices at the moment.

What's your evidence for this? Have rightmove released new stats?

theEnd

mobfant wrote: »

What's your evidence for this? Have rightmove released new stats?

For now, it's just what I'm seeing.

I expect rightmove to reflect this significantly in the next few months.

More than a few people saying the same thing to me. Might just be an adjustment from the crazy rise in asking prices. Or could be the start of a proper correction.

the_flying_pig

This seems to be a rare ish example of a place locally that's priced too high to sell. Look at the size of it (not that big) and no side return or even loft extensions... places like this were going for about half as much not long ago at all and theschool opposite just got a really bad ofsted... mental, unless of course the coat of grey paint is worth a quarter mill or so.

vw100

Valuations by lenders are coming in lower for properties, which have been over priced by estate agents. With interest rates rising soon, and lenders being more conservative - they are not lending the full amount on certain properties and areas.

AndyGuil

Lower than the asking price, which is common. Selling price is rising.

mobfant

I withdrew an offer on a two bed in Brixton for £500,000. There were two other offers at £500,000 at the time. Various reasons for withdrawing but final straw was when mortgage company valued it at £485,000

It's been on the market for 5 weeks and they've now reduced their asking price from £500,000 to £485,000.

The number of reductions in Brixton and Dalston have been going up in recent weeks, as have the number of properties coming on to the market. I think we've reached at worst a stagnation, especially as the traditionally quiet summer approaches, and at best a peak. If there's continued "good news" on the economy, interest rates will probably start to go up in a few months. And then *inshallah* the crash begins.

observingthedebate

Lots of properties in roads I am following in SW17 are now reduced or even withdrawn from the market.

I have not seen an under-offer for a while. It feels like total market stagnation.

theEnd

Wandsworth leading the London falls on rightmove this month.

Could just be blip, or some of the froth being knocked off.

_Ed

On our street in SW2, terraced houses were ~500K in 2012. Not much happened in 2013, then everything went a bit mad this year and each subsequent house for sale was priced ~50K more than the last one - and selling within a couple of weeks - all the way up to ~850K.

Then about a two months ago one went on for £950K which has sat on the market until now (just gone under offer).

I think the EA's have been pushing the asking prices up very aggressively and not been worrying as long as stuff was selling. Looks like now they may have overshot a bit and then buyers are drying up?