Housing Market Cooling Rapidly in London?

theEnd

Been keeping an eye on asking prices near where I bought last year.

Things were quiet last summer. Had my offer accepted about 6% below asking. By the time I completed you could see the market had gone mad. Was surprised that I wasn't gazumped or ask to pay more.

Then into the winter things went crazy. People were asking nearly x3 what I paid for similar stuff (nearer the station). I'd say at one point I'd would could have easily sold for around +50% ... in less than a year.

But now things have gone very quiet again. And the stuff coming on is expensive, but nowhere near x3. I still think I could comfortable get around +30% (not including the work/spend on the flat).

But might go further down from there.

kmmr

Here's a specific example:

http://www.rightmove.co.uk/property-for-sale/property-45071209.html

Went on for £950 a few months ago and went to sealed bids very quickly. The buyers dropped out for some reason, and it's back on at £895. I spoke the the agent to get a feel for why (I'm looking at selling something very similar) and he said that the market was insane recently but seems to have turned off like a tap.

This is now apparently priced 'to sell' and they expect offers over the current asking price. Will believe it when I see it.

Jason74

Big slowdown in my area around Crystal Palace / Penge. Market has been absolutely bonkers over the past 12 Months, and has probably gone up close to 40% since this time last year. But the market just seems to be saying no to further increases. This has been happening for 6-8 weeks, but the last couple of weeks it seems the pace of the market seems to have dropped off another level again. While previously, reducing the price back to an asking price from April would have more or less secured an instant sale, it now seems to have hit a point where even reduced properties are sticking for a while.

I'm certainly not calling a local crash or anything like that, but the local market certainly appears to have hit a balance point where things are likely to be stable for a bit from here. A couple of local agents I've spoken to have admitted that this seems to be what's happening.

I can't comment on the rest of London though. It seems to me that even the capital in itself is a series of local markets, rather than a consistent whole.

theEnd

kmmr wrote: »

Here's a specific example:

http://www.rightmove.co.uk/property-for-sale/property-45071209.html

Went on for £950 a few months ago

£950k for a basement in Shepherds Bush !!!!

harrys_dad

kmmr wrote: »

Here's a specific example:

http://www.rightmove.co.uk/property-for-sale/property-45071209.html

Went on for £950 a few months ago and went to sealed bids very quickly. The buyers dropped out for some reason, and it's back on at £895. I spoke the the agent to get a feel for why (I'm looking at selling something very similar) and he said that the market was insane recently but seems to have turned off like a tap.

This is now apparently priced 'to sell' and they expect offers over the current asking price. Will believe it when I see it.

£18000 per square metre for a basement?????????????? In Shepherds Bush? That is assuming the conservatory has planning permission to be counted as interior space. Otherwise it works out as closer to £23000 per square metre.

jjlandlord

I'd like to have such a 'basement'. It looks better than 90% of the houses on Rightmove...

theEnd

jjlandlord wrote: »

I'd like to have such a 'basement'. It looks better than 90% of the houses on Rightmove...

It is nice ..... but the price!!!

kmmr

The conservatory has PP, but not the 'summer house'.

And according to the agents this is 'Brook Green'!! Not Shepherds Bush.

It is less than 100m from Holland Park though. This property sold for £550(ish) in 2009. No renovation since other than a bit of internal decorating.

jjlandlord

kmmr wrote: »

This property sold for £550(ish) in 2009. No renovation since other than a bit of internal decorating.

Well if they manage to sell it for 900k they will have made 70k a year... No need to work at that level and tax free.