Is it easy to sell a house in East Dulwich?

[Jeremy]

You could potentially still get away with a cheeky price if the house was, like, totally uh-may-zing.

For 95% of the standard flats and houses on the market, you'll probably need to undercut the opposition to get anywhere.

[Mick Mac]

People are realising that's its more difficult to get a mortgage under the new rules for proving affordability in the mortgage application.

Perhaps its a masterstroke by the Govt/FCA in cooling the market without hurting current homeowners with an interest rate rise.

[Reg Smeeton]

On Rightmove about 300 properties in SE22 are currently listed for sale. A year or more ago it was more like 150, so supply is definitely up. Having said that I remember seeing in 2010 that there were about 400 for sale.

[*Bob*]

House on market for ?10 .. sell in half an nanosecond.

House on market for ?2m .. no sale.

Just find the right point in between these two and you won't have a problem. Easy.

[trizza]

If our experience is anything to go buy, there is just a stand off between:

a) Buyers who are concerned about current house prices and over stretching themselves to buy at the top of the market; and

b) Sellers who have seen neighbours' houses go for significant amounts and want to cash in themselves. But times have moved on - perhaps sellers are not being realistic about their asking prices.

There is just a disconnect between a) and b) at the moment.

Many (like us) have lived in ED for a while. When we were looking in 2010 you could get a decent size 3 bed on upland road for around ?550K, now the asking price is around ?850K and asking price for 4 beds can be over ?1m! We bought something a little smaller and want to upsize. However, we just won't pay the asking prices for a larger house as we think that prices are too high and are bound to adjust at some stage soon: things can happen very quickly. Just the stamp duty is an enormous amount.

The solution? Well, we are having our loft done. There are five loft conversions going on down our road, so a lot of people seem to be having the same idea!

The fact is that if you dropped your price a buyer like us may be tempted to take a punt and buy, so you may get more interest.

[Exjags]

Going back to question of how first timers can afford ED/London prices in general Are there really that many couples inheriting 300k from grandparents? Assumes 150k for each partner. That is a pretty big estate for grandparents to leave if they have a minimum of 2 kids, 4 grandkids. We may be talking ED/London but the mail online today says only 1 in 5 leave as much as 250k

[StraferJack]

You would be amazed what people already comfortably ensconced believe is "possible"

[Henry_17]

Exjags,

As you elude to, the example given is indeed likely to be atypical. Much more likely, in my opinion, for ftbs is a higher average mix of housing equity passed down from parents through either negative saving or gross leverage of housing assets, AND reasonably onerous leverage on both of the couple in question's income.

Henry

[Blackcurrant]

trizza Wrote:

"There is just a stand off between:

a) Buyers who are concerned about current house prices and over stretching themselves to buy at the top of the market; and

b) Sellers who have seen neighbours' houses go for significant amounts and want to cash in themselves. But times have moved on."

That's a good description of a falling market. Not all vendors are in a stand off. Some of them HAVE to sell. Debt, divorce and death is the clich? estate agents use. Motivated sellers will drop their price until it reaches market value, at which point it will sell. The recorded sale price won't show up in land registry data and affect published indexes for up to six months after the deal is struck (depending on speed of completion and puntuality of solicitor). In the meantime most sellers remain sure their houses are worth what the indexes or zoopla (based on said indexes) say they're worth, i.e. what similar houses were selling for in spring - 15% more than they're worth now.

[Jeremy]

Yeah the scenario of first time buyers snapping up ?1M houses in ED sounds unlikely to me. A more realistic scenario might be second time buyers in their thirties, selling a flat Clapham/Islington/Hackney for 700K and making the next step up.

[LondonMix]

Agree.

But also, I think I saw it on a map of house prices but you can't think of ED prices as a reflection of average London prices. ED is now one of the more expensive parts of London-- I think top 20%. To move here now, you need to a high earner even by London standards. Its really as simple as that.

There are I think 6,000 homes in the area and only 1,000 or so for sale a year so its not really that surprising that there are that many couples in London who make a 250k joint income and have a large chunk of equity from their first flat.

[edhistory]

LondonMix Wrote:

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>

> There are I think 6,000 homes in the area and only

> 1,000 or so for sale a year so its not really that

> surprising that there are that many couples in

> London who make a 250k joint income and have a

> large chunk of equity from their first flat.

Whence the data?

What is "the area"?

[LondonMix]

EDhistory, I am not writing a dissertation but having a general chat. Assuming you aren't just being provocative and actually are interested have a look at the following places to see what you can find. I'm at work so can't get into it in any more detail right now.

http://www.rightmove.co.uk/house-prices/detail.html?country=england&locationIdentifier=OUTCODE%5E2323&searchLocation=SE22&year=1&referrer=listChangeCriteria

Play around with this. In the last 12 months only 516 properties were sold in the SE22 postcode though volumes historically have been higher.

The relative price map was from the FT. If you have access you can find it.

I remember the circa 5,000 to 6,000 households from the census.

[Jeremy]

I also found this:

http://www.londonpropertywatch.co.uk/avg_prices.html

SE22 doesn't appear to be near the top 20, but certainly more expensive than average. Although it's hard to draw meaningful conclusions, as this doesn't distinguish between property types (e.g. flat/house or ex-council). For instance, if you look at 3 beds, Brixton, Ealing, Blackheath are all cheaper than SE22 which doesn't sound right to me.

[miga]

.

[Cyclemonkey]

I inherited a 50s wardrobe and some plates from my grandparents and ?1000 that went towards the blackhole of my student loan debt.

[LondonMix]

Sorry, I meant top 20%, not top 20 neighbourhoods.

East Dulwich is more expensive than Brixton. I thought Blackheath was more expensive than ED though. No idea on Ealing!

[Jeremy]

miga Wrote:

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> More (modern) social housing in those areas means lower average prices for places?

Yep that's what I was alluding to. So the table isn't totally accurate... but I think it shows the general picture.

[Help-Ma-Boab]

For a novice first time buyer such as myself, how do you judge the value of something, or if it's overpriced. Do you estimate 10% of asking price. Really don't know. I appreciate it's hard to value if you fall in love with a place but any hints appreciated? PM me if it takes this thread off piste. Cheers

[Jeremy]

LondonMix Wrote:

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> Sorry, I meant top 20%, not top 20 neighbourhoods.

Yeah but as there are 104 postcodes in the list, the rank is almost the same as the percentile.

I don't think SE22 is anywhere near the top 20%. Maybe top 40%. Don't want to bang on about this, but ED is not quite as far up the desirability scale as some people seem to think! Swathes of SW/W/NW London are much more expensive.

[LondonMix]

The average price of a terraced property in London is of ?569,906

http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalPropertiesSoldAndAveragePrice.html?searchLocation=SE22

The average price of a terraced property in SE22 is 757,600

http://www.rightmove.co.uk/house-prices-in-my-area/marketTrendsTotalPropertiesSoldAndAveragePrice.html?searchLocation=SE22

I can't find the original map but to me, that suggest a significant difference between average and SE22. However, I am happy to agree to disagree.

[Jeremy]

Perhaps the cheaper areas are more densely populated? Too little data to draw meaningful like-for-like comparisons, I guess.

[Jeremy]

Help-Ma-Boab Wrote:

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

> For a novice first time buyer such as myself, how

> do you judge the value of something, or if it's

> overpriced. Do you estimate 10% of asking price.

> Really don't know. I appreciate it's hard to value

> if you fall in love with a place but any hints

> appreciated? PM me if it takes this thread off

> piste. Cheers

Check on Zoopla what similar places have sold for previously? And try to factor in the cost of any work done (ktchen, bathroom, extension, etc).

[LondonMix]

Yes, perhaps cheaper postcodes cover larger areas.

Either way, I have friends who live in East London and to most people East Dulwich prices aren't average. The area is seen as expensive and you have to be considerably better off than average to buy here these days.

[Cyclemonkey]

Jeremy - you are a bit behind the times - in London most first time buyers ARE in their thirties!