Trying to buy a house in this area is near impossible

[Saila]

The houses that aren't selling may be 'dud' ones.

There were houses last year that hung on the market for ages. Woodwarde road, desenfans (in dulwich).

Often becaue of grelims like small garden, on a main road or subsidence problems or just wrongly priced properties etc

The market seemed to cool in autumn last year, then just picked up again. Fits and starts.

[Lizziespangles]

I am realistic about what I can afford and will look as far as Beckenham!

[SteveUK1978]

Saila - no doubt if you put something on that is "fairly" priced (a relative term) it will get snapped up in days, but people seem unwilling to pay the crazy asking prices for some that have gone on recently.

[LondonMix]

Agree with Steve- houses that are trying to push prices beyond the recent heights they reached at the beginning of this year don't seem to be having much success. Several houses have had to drop their asking recently- Hebert rd, Landcroft rd, Chesterfield and Frogley all of which were way above recent asking prices. Buyers seem to have reached their limit for additional large increases for the moment. Still, compared to the end on 2012' prices up are up 30 percent

[Saila]

Agree - and they come under the category of 'crazy-price'

Supply still feels low..

What will swing it though imo is a strengthening pound

Which will come w an interest rate hike

[PokerTime]

There was a report of the slowing of private rent increases in London this week. Down to an average of 3.3% over the last quarter, compared to 6.5% over the same quarter in 2012. A hike in interest rates would definitely have an impact.

[SteveUK1978]

I get the demand for 3br houses - even at ?850k, although at that level even people who have 'done well' on flats and have good joint incomes must still be taking out a chunky mortgage. What I don't get is the long term demand for the ?1m+ houses (a 3br in most of north London is already at that level)....who is buying them? People must be taking out ?500k+ mortgages even if they have decent equity and a hike in interest rates has to hurt them? People may have fixed for 3-5 years, but a hike in IRs and the expiry of those deals will surely have a major impact?

Perhaps that's wishful thinking on my part and maybe I'm just too conservative by not wanting to have ?600k in debt!

[Loz]

Just looking at sold prices and found this particular piece of madness...

36 St Francis Road, London, Greater London SE22 8DE

?650,000 Terraced, Freehold 17 Jan 2014

?420,000 Terraced, Freehold 09 Oct 2013

?230k profit in three months!

[Zebedee Tring]

Are the sale prices for these two St Francis Road properties really comparable? One house might have been in much better condition than the other.

[Mick Mac]

Zebedee Tring Wrote:

-------------------------------------------------------

> Are the sale prices for these two St Francis Road

> properties really comparable? One house might have

> been in much better condition than the other.

Two properties? Its the same house isn't it?

[Loz]

Yep - sold twice in four months.

[Sue]

Loz Wrote:

-------------------------------------------------------

> Just looking at sold prices and found this

> particular piece of madness...

>

> 36 St Francis Road, London, Greater London SE22

> 8DE

> ?650,000 Terraced, Freehold 17 Jan 2014

> ?420,000 Terraced, Freehold 09 Oct 2013

>

> ?230k profit in three months!

xxxxxx

Bloody hell - but presumably it was "improved" in the intervening period?

[simonethebeaver]

The advert for the first sale describes it as 'in need of complete modernisation'.

[alice]

planning shopws nothing for 36 - so an impressive renovation?

[simonethebeaver]

Sorry, the advert for the SECOND sale says complete modernisation! I read it with half a brain and assumed it was the listing for the cheaper sale. So someone has bought it and simply resold without doing the work, to ride the market.

[Loz]

.

[Mustard]

After the first sale completed for on 9th October, It was put back on the market on 18th October for ?650,000. Sounds like some serious undervaluing went on there, and someone benefited hugely.

[Mustard]

Two unmodernised three bedrooms in Coplestone on market for ?800k, under offer/sold. Huge gardens.

[Blackcurrant]

Loz Wrote:

-------------------------------------------------------

> Just looking at sold prices and found this

> particular piece of madness...

>

> 36 St Francis Road, London, Greater London SE22

> 8DE

> ?650,000 Terraced, Freehold 17 Jan 2014

> ?420,000 Terraced, Freehold 09 Oct 2013

>

> ?230k profit in three months!

Up 55% in 3 months, which is an annualised rate of inflation of 365%. Very hard to believe there isn't a London bubble.

[Jeremy]

We were in the market for a 3 bed terrace last summer. There was nothing matching that description in ED for under 650K - regardless of condition. So at ?420K it was ridiculously under-valued, unless it had major structural defects or something.

[Loz]

Blackcurrant Wrote:

-------------------------------------------------------

> Up 55% in 3 months, which is an annualised rate of

> inflation of 365%. Very hard to believe there isn't a London bubble.

I think you'll find it's not anywhere near representative of the entire London market.

[Blackcurrant]

Loz Wrote:

-------------------------------------------------------

> Blackcurrant Wrote:

> --------------------------------------------------

> -----

> > Up 55% in 3 months, which is an annualised rate

> of

> > inflation of 365%. Very hard to believe there

> isn't a London bubble.

>

> I think you'll find it's not anywhere near

> representative of the entire London market.

Up 40% a year is nearer the mark, but that still suggests unsustainable hysteria on the part of buyers.

What are rental yields down to now? 2%?

[Jeremy]

Based on nothing more than personal anecdote... I think a basic 3 bed terrace has gone up from around 675K to around 825ish in a year. Closer to 20% than 40%. I think flats might have risen more, though.

[Blackcurrant]

Quick check of median price & rent for houses and flats in SE22 show average gross rental yield is 3%. Net yield obviously well below this (and well below hassle-free dividend yield on stockmarket). These figs make no sense to investors unless the bank rate stays near zero permanently. As rents are tied much more strongly to supply and demand fundamentals than prices, this says bubble more than housing shortage.

I don't have rental yields for 2007 just before the last crash but am happy to bet they were higher.

[StraferJack]

". These figs make no sense to investors "

what about the asset price once the mortgage is payed off?