It is always a dangerous exercise trying to portray market conditions, especially in the current climate. So many opinions, based on so many varied predictions, results, bank rates, media articles etc, without many of them , if any, proving to be reliable. From where we sit, we can only relay the information we see every day with our enquiries from potential buyers and how those enquiries are moving onto a successful sale - and at what price.
Since the beginning of May 2009, there has been a very significant rise of new enquiries - at all price levels. In comparison to March and April 2009, May enquiries are up by 300% and compared to May 2008, they are double.
£1.6m Loft in Kings Cross, sold in May 2009
There is a general feeling from these new enquiries that people feel in many cases, prices have probably gone as low as they are likely to go - from those willing to sell and whilst there still be some downward movement in some areas of the UK, well located, interesting, quality properties are bottomed out.
This may or may not be the case and we are certainly not going to attempt to predict anything, but all we know is that we agreed sales on 13 properties during May 2009 (we agreed sales on 8 properties in May 2008 and 17 in May 2007) but only 6 in March 2009 and 8 in April 2009.
In some cases, we even had to go to sealed bids, but only on the basis of being in receipt of several offers and in those cases, below the asking prices. There were several properties that had been on the market for 4-5 months, a few of which had been reduced in price during that time and interested parties revisiting them several months after initial viewing the property - and finally making an offer.
£895k converted Tram building in N7 - sold in May 2009
This activity has also been partly driven by a severe lack of new properties coming to the market - again at all price levels. Add the revitalised demand the the real lack of new (interesting) housing stock and whilst we are by no means back to any kind of a rising market, supply and demand are not even remotely closely related and the appearence is that of a bullish market. In this case, the bulls are the buyers (we have several cases that can only be described as mild stalking - from several buyers calling our Valuer, Simon, 2-3 times a day to ask about forthcoming valuations and potential offerings!).
In fairness, it is an excellent time to buy as well as sell. If the seller is realistic about the potential sale price, then without any shadow of a doubt, a sale can be arranged relatively quickly or at the very least, enquiries and viewings are hugely up on 3 months ago. As an example, we posted the details of an interesting Live/Work duplex loft in E2 at £330,000 yesterday, and within 24 hours, we received 9 email enquiries - and we have not even had a chance to email the details out to our registered buyers. At the same time, we emailed 16 existing registered buyers with pre-view details of a Penthouse coming on the market in Islington at £1.625m and received 10 replies of interest to view the property as soon as possible. Of course, these enquiries may not result in any sale, but it confirms the renewed level of interest shown over the last 6+ weeks.
E2 Duplex Live/Work Loft just on market for £330k
Lending and reasonable mortgages are still a huge problem for many and we know of many 100’s of potential buyers who would dearly love to buy something now but are still finding it extremely difficult to source reasonable lending.
The result of this increased activity can only be endorsed by the fact that several of our staff have changed their holiday plans for this summer - one of them changing their cycling holiday in the Lake District to 10 days in Vancouver and another from a holiday cottage in Lille to 2 weeks in Corsica! A reliable endorsement of a stonger market? Perhaps not, but increased holiday plans from colleagues who can only be described as wall flowers when it comes to buying their round at our end of weekly get together, then perhaps the signs are encouraging.
Corsica - Bonifacio
False Creek, Vancouver