The housing market in the UK is showing signs of cooling, as the number of buyers in the market decreases. However, sellers are still reluctant to reduce their asking prices, leading to a mismatch between supply and demand. Yes indeed, Londoners are among the most STUBBORN of home sellers when it comes to the value of their home. The property is only worth what someone is willing to pay for it AT THAT POINT IN TIME. I've been doing this for 20 years and trust me when I say that willing it to be worth more does not make it so...
Chestertons event reported that the number of buyers registering with the agency fell by 3% in July compared to June. The number of properties for sale also fell by 1%. The average time it took to sell a property in London was 52 days, which is up from 47 days in June. Quicker than the national average, mind.
Matthew Pointing, Chestertons' head of research, said that the housing market is "showing signs of cooling" but that sellers are "still holding out for strong prices. The combination of rising inflation, interest rates and the ongoing uncertainty in the global economy is starting to weigh on buyer sentiment," he said.
Pointing said that he expects the housing market to remain competitive in the coming months, but that there could be some "modest price falls" in some areas. The factors that are driving the slowdown in the housing market include the rising cost of living, the increase in interest rates, and the uncertainty caused by the war in Ukraine. The rising cost of living is making it more difficult for people to afford to buy a home, while the increase in interest rates is making mortgages more expensive. The war in Ukraine is also causing uncertainty in the global economy, which is making people less likely to make major financial decisions, such as buying a home.
Despite the slowdown, the housing market in London remains strong. The average asking price for a property in London is now £650,000, which is up 10% from last year. This is due to the limited supply of housing in London and the strong demand from both domestic and international buyers.
It remains to be seen how the housing market will develop in the coming months. However, it is likely that the market will remain competitive, as sellers are unlikely to drop their asking prices. They will simply have to cope with a slower sale, or no sale at all as research shows that only HALF of properties listed ever get sold. Let that sink in...
If you are looking to sell then don't be dazzled by high asking prices and low fees - be realistic and understand that you may have to take a bit of a haircut to get moving. Remember that moving up the ladder this is entirely to your benefit. Losing 10% of £500k and winning 10% of £1m is a net positive!
If you are after a realistic, actual valuation of your home then do drop me a line.
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