Data released this week by Hometrack shows London price growth has slowed to 1.8%yoy. More interestingly it also shows an increase in discounts on asking prices.
Where we are in the market now, with the average prices not growing as much, we have sellers believing in higher values and buyers in lower values. This means we are now in a buyers market.
What does this mean for you?
It highlights how important it is to look for real value when you buy, find what great relative value is and then offer at a price that works for you. Keep in mind most sellers still won't accept offers under asking price.
When I started pricing properties to put them on the market for developers and private sellers, I learnt a simple anecdote that I still hear whenever I am discussing value with someone regarding pricing.
"A property is worth what someone is willing and able to pay for it."
Yes, this is oversimplified, but in essence, it is very accurate.
No matter how much someone spent building a property, if no one else likes it, they won't be able to sell it.
Also, let's suppose someone is marketing a fantastic home, and dozens of potential buyers fall in love with it, but none of them can afford it or get a mortgage for it, then it also won't sell.
Peoples opinion of this value will differ. However, a sale can only happen once the buyer and seller agree on a price.
Even in this market, you will find properties selling for above asking. Thus, be clear in your assessment of relative value when you go to make an offer.
There are some great deals to be made and some great bargains to find out there.
Here's to an exciting start to 2018.