Its really no surprise that only 50% of properties being marketed are currently selling. Mortgages are still difficult to obtain unless you have a huge deposit and the payment profile of a saint for the last few years.
Yet whenever I’m looking on Rightmove I see properties advertised far in excess of the prices being obtained in the dizzy heights of 2007.
In fact just a few days ago when trying to offer some perspective to a landlord client of ours who is thinking of selling his 3 bed terrace in one of the better roads in SE15. I couldn’t quite work out why a ‘reputable and established’ self proclaimed ‘London Estate Agent’ had marketed his neighbours property at a price 17% higher than peak sale prices achieved in 2007/08 for the very same road. I also noticed that a property in need of updating which was again a few doors away had recently sold for £160,000 less. Though in need of updating, you can do quite a lot with £160,000!
Unsurprisingly the property hasn’t been denoted as ‘under offer’. And I can’t see how any RICS valuer will justify the price either. Perhaps they are hoping for a cash buyer who is willing to complete without paying attention to any third-party valuation of the property. A long shot.
Is it any wonder stock isn’t selling or sales are falling through at the point a mortgage valuation takes place?
Countrywide recently said in a press statement that only those willing to sell at the correct price are selling and those at speculative prices are simply stagnating on the market.
It makes utter sense with 56% fewer buyers than the peak markets.
The best properties in any given area will always attract buyers and in many of the non prime london towns prices for the best stock may be approaching peak prices. Same for those properties selling at what is considered ‘below market value’. Finding a buyer for almost everything else in this market isn’t so easy.
fishneedwater offer sellers a FREE RICS valuation to aid marketing at the correct price to attract buyers.