The market in SW5 appears to have peaked in April / May this year with vendors who decided to sell at that time achieving record prices on their properties (in a few cases breaking through the £2,000 per sq ft mark).
The market, since then has, without a doubt, re-positioned itself. This has happened relatively quickly and buyers are now being much more considered about what they are prepared to offer on and the timeframe in which they are prepared to operate.
There seems to be various reasons for this; a strong pound, tightening up of the mortgage regulations, threats of a mansion tax and possible interest rate increases have all impacted on the market since the beginning of the Summer. With this, many buyers have adopted what would appears to be a wait and see approach and this has led to prices stagnating and in some cases falling.
This situation does, however, present various opportunities. The bargain hunter in search of a deal, the first time buyer who was put off by the rapid increase over the past couple of years, the seasoned investor picking the appropriate time to re-enter the market all can begin to feel greater confidence that a purchase now would offer better value than at any time in the recent past. For vendors, this slow down will probably solidify plans to sell as they become more aware that by doing so they won’t be missing out on further gains and in fact we have had several long standing clients opting to sell and to put their capital into other property investments outside of the M25.
Either way there will always be buyers and sellers and it is in these markets when a good, hands-on agent can really add value.