London Property Finder

Barnard Marcus had a good auction last week with sales reaching 82pts which is about where sales have been for some years – excluding the 2nd quarter of this year.  I.e. auction houses generally sell between 75pts and 85pts of their stock during the good times.

London property was in short supply but in general values also held their own: only four houses didn’t sell and of those the margin betwen final offer and reserve was between £5K and 25K.

12 Clitterhouse Road sold for £235K. £20,000 more than number 131 sold for in May of this year but £75K less than 111 and 27 which sold for £310 a piece in April and May respectively.  We suspect numbers 12 and 131 needed a little work, but even if they didn’t the auction price reflects a 24pts saving, which is roughly where you would expect to see the average auction property.

14 Preston Waye in Harrow sold for £400K, £20K over the reserve price but offering a 20pts discount versus number 9 which sold for £494,950 in March of last year.  We didn’t view either, so number 9 could be a palace in comparison, in which case this is even better news.

Why?  Because the auction market is pretty indicative of the market as a whole and if people are buying at 20pts off ‘market value’ at auction, then clearly there is hope for the homeowners in general.  In a good market, it makes sense for property at auction to be sold for 20-30pts below the neighbouring house sold through an estate agent.  It’s generally a distress sale. In a slow market – it is fabulous news.  It means prices are holding up in general because of the supply problem we have in London in particular.  The reason the housing market is a mess is because no-one wants to lend much to first time buyers or anyone else for that matter.  And when the credit crunch eases, the buyers market will disappear,  because more people want to have property in London than there are properties to go around.  To find a house quickly now before it is too late just contact this London Property Finder.

Technorati Tags: Auctions, Buyers market, London Property Finder

Tags: Auctions, Buyers market, London Property Finder

Musings of a London Property Search Agent

This is a question raised by Judith Heywood in her column in Bricks & Mortar in The Times today with quotes from experts including the Head of Research at upmarket estate agents Knight Frank and others.

The Times also reports that people selling now tend to be desperate, so may well accept a low offer, particularly if they have decided to sell at auction and reports that savvy semi- and professional investors are returning to the auction rooms after a couple of years of staying away. It is a sentiment we share. We last bought at auction in the slowdown when a crash was widely forecast in 2004. We sold with a 25% profit 5 months later, but the markets then surged and we didn’t spot any more auction bargains for a while.
 

It is all about timing.
 

Ray Boulger of mortgage broker Charcol, whom we deal with is to the point with his quote in The Times today:

“The challenge for buyers – who will, in the main, hold off until it’s too late – is to get in while it’s a buyer’s market.”

You’ve been warned by an informed London Property Search Agent

Technorati Tags: Buyers market, Buying at Auction, House Prices, London House Prices, London Property Search Agent

Tags: Buyers market, Buying at Auction, House Prices, London House Prices, London Property Search Agent