Property prices cooling in ED?

[cantthinkofaname]

So I've heard from various friends in the area that property prices are dropping in east Dulwich and Honor oak, & hanging around a while.

My boss only sold her place after 9 weeks and a reduction (HOP) and my friend has just dropped the price of her 2 bed flat, way under what the agents originally thought they could get for it (ED).

Any thoughts? We were thinking of selling this spring BUT maybe not now...

[ED - NAGAIUTB]

Probably more likely is that some hideously over priced properties are hanging around. There's a ground floor flat on my road up to c?650k just because there is a recording studio in the garden. The flat itself is in fair order but unlikely to go for that price, unless they find a buyer who specifically wants a recording studio in the garden!

Compare that with a 3 bed house that sold recently after the owner passed away, that went for c?850k which was an absolute bargain. It needed updating internally but you could move straight in.

I suspect that the properties that are sitting around are those where the Agent is royally extracting the yellow stuff when pricing it up as the market has been so buoyant for so long.

[Jeremy]

Yep. Too many overpriced properties. Agents trying it on... vendors going with whoever values the property the highest..

The fact your friend's place sold after the price was reduced surely just means it was on at the wrong price to start with.

[red devil]

I don't disagree with any of the above comments, but also worth noting that prices generally cool off post-Christmas. If properties still aren't shifting over the coming Spring months, then it's likely to be a longer term trend rather than a seasonal blip. Either way, if you're selling and buying in the same market it shouldn't make any difference...

[Calsug]

Have to agree that it seems a lot of people are falling for the classic highest value estate agent trick.

If you were thinking of selling then sell if you don't want to sell then don't it's as simple as that unless the cash from place you are thinking of selling won't be used to buy another property.... Your house/flat is not the only one going up and down in price. It's too easy to get tied up in the I'll wait until it's worth X but ultimately all that will happen is you may either miss buying your dream home or a currently very cheap mortgage rate.

[P.O.U.S.theWonderCat]

I've been tracking sold prices in ED and HOP since 2014. Period properties are holding their value or going up - identical stock to our house is selling for ?25-30K more than what we paid. Non-period have dipped quite a bit.

[P.O.U.S.theWonderCat]

Agree about the overpriced stock comments though. There's a 2 bed place in Darrell Road I looked, and dismissed as grossly overpriced at ?600K, a couple of years ago. It's just gone back on the market (presumably the same owners as the decor hasn't changed) for just shy of ?650K.

[Calsug]

Also to add to my comment above to make sure I don't sound high and mighty, I fell for the high valuation trick from an estate agent who I won't name, ultimately I wasted 7 months, had the hassle of tidying the house every weekend and trying to keep out of my own flat for that period etc... Took it off the market for a few months and put it back on at let's say a more aggressive / realistic price and it sold for asking price within 2 weeks...

[dbboy]

Spoke with an agent yesterday who told me that their are more buyers then properties available which is resulting in prices remaining high as buyers want to live in the area and so are willing to pay a premium to do so.

[Mick Mac]

I am still seeing prices rising slowly but steadily - This looks like a quick sale - don't know if it was on previously though

http://www.rightmove.co.uk/property-for-sale/property-41026191.html

[cantthinkofaname]

Dbboy - agents would say that though! The reality is its not always as hot and lucrative as they make our. Buyers still have power to dictate prices by refusing to be pushed around and sticking to budgets.

Thanks Calsug - we will probably still do it before certain small tots get any bigger. Love love love East Dulwich and really want to stay. There is no neighbourhood like it.

[Calsug]

Agree it's tough to move away from ED we were there for 4 years but ultimately couldn't afford the SE22 postcode anymore. We moved to SE15 which is still a short(ish) walk over Peckham Rye park to East Dulwich when we want to plus honor oak park station is better connected for us.

[P.O.U.S.theWonderCat]

What Clasug said. For 100K+ less you can often get very similar types of houses (with the benefit of upstairs bathrooms rather than off the kitchen) with more square metres of floorspace and bigger gardens, with better connections in Honor Oak. Yes, it's a bit yummy-mummysville and more suburban feeling than ED, but not sure the difference in culture is worth 100K!

[XIX]

Not sure I agree with red devil and calsug that if you are buying and selling, the state of the market doesn't make any difference.

If you are looking to sell and then purchase a higher value property you'd be best off doing so in a depressed market where values have dropped. based on following logic:

if the market has dropped by 10%, that 10% equates to more in real terms on the more expensive property you are buying than the less expensive one you are selling, as follows -

the property you are selling was worth 500000, but is now worth 450000. ie its lost 50K value

the property you want to buy was worth 1000000, but is now worth 900000. ie its lost 100K value.

ie, in real terms the more expensive property has lost more value and you stand to 'gain' 50K.

However, of course this is a principle based on an even market where rises and falls apply equally to all properties, and does not take into account local/individual factors that may influence prices. I'm not saying this is an easy game to play (and other factors may dictate that you are unable to wait until the market is right), but it is a general principle to bear in mind and shows that understanding whether the market is rising or falling is relevant in a decision to buy and sell.

[Calsug]

XIX yes I see the logic in that but really both our logics are flawed, period family homes for example will rise and fall at a different percentage to a first time buyers flat. The general gist of my argument is if the timing and affordability is right for you don't wait to see if you can gain more on you current home.

[dbboy]

A property is only worth what a buyer is willing to pay. The vendor can either accept the offer, go through a period of negotiation or wait for a higher offer. I suppose it comes down to how much the buyer wants the property and long the vendor is willing to wait for a buyer at the price they want to sell at.

[Otta]

ED - NAGAIUTB Wrote:

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> a 3 bed house that sold recently, that went for c?850k which was an absolute bargain.

I know you're probably right compared to similar properties in the area, but I still find it unbelievable that houses in East Dulwich go for that kind of money, let alone it being seen as a bargain!

[Jeremy]

Otta Wrote:

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> I still find it unbelievable that houses in East Dulwich go for

> that kind of money, let alone it being seen as a

> bargain!

I know.. 15 years ago a house was probably worth 250K or so.

Not sure how much of it is down to ED becoming yuppified (as my Mum said) and how much is down to London property in general going crazy... a bit of both obviously...

[LondonMix]

It is a bit both.

London as a whole is cooling. Its only just started but I have friends that are looking who have seen a dramatic shift in the last few weeks. Its the knock on effect of the distress in the super prime segment. Last year prices in Knightsbridge fell 7%. The new high end developments both in prime central London and on the South Bank are flooding the market just as demand from buy to let investors (both abroad and domestic is cooling).

I actually think this year will be a tough slow market with very few transactions and falling prices. Long term I think prices will continue to rise unless something dramatic happens regarding jobs growth in the city (possible depending on Brexit / immigration policy).

[Jeremy]

It really depends on the area, LM. Cheaper, previously less popular areas on the outskirts of London are doing well... lots of buyers, sealed bids, etc... think Barking, Sutton, etc.

[LondonMix]

That's true-- . Where my friend is looking-- Penge / Eltham, Catford-- was equally manic (sealed bids etc) until recent weeks. ED has been less manic than that for a good long while. I think the slowdown will disproportionately impact the higher segments of the market.

The highest end of the market is virtually frozen. The buyers are no longer there at same price as before. My boss lives in Chelsea and his house has been on the market for 4 months. That market is so over-valued and buyers simply aren't there at those prices anymore.

[Loz]

LondonMix Wrote:

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> The new high end developments both in prime central London and on

> the South Bank are flooding the market just as demand from buy to let investors (both abroad and

> domestic is cooling).

This is exactly why people who complain about high-end stuff being built are wrong. Just build, build and build and prices in London will normalise. The problem is simple - more people than properties.

[ed_pete]

Jeremy Wrote:

> Not sure how much of it is down to ED becoming

> yuppified (as my Mum said)

Is Louisa your Mum then Jeremy ?

[Jeremy]

ed_pete Wrote:

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> Is Louisa your Mum then Jeremy ?

Haha... I reckon my mum's slightly older, but they're both of an age where to them, a young city dweller with a good job = "yuppy"!

But my mum doesn't think pizza is fancy.

[Otta]

Loz Wrote:

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> This is exactly why people who complain about

> high-end stuff being built are wrong. Just build,

> build and build and prices in London will

> normalise. The problem is simple - more people

> than properties.

Indeed. But then when plans are submitted to build, everyone suddenly gets all NIMBY and starts objecting. Look at the proposals for the Iceland building being 4 stories. Suddenly we've had people on this forum saying it will set a precedent and the area will be full of "high rises" (4 stories?!?!?).

I read this the other day, which I thought was interesting.

http://www.theguardian.com/uk-news/davehillblog/2016/mar/29/which-london-mayor-candidate-will-fix-the-capitals-housing-crisis