|Buyers Return to Top End of House Market|
Houses see price rally as flats continue to fall
The latest official figures provide some comfort for property owners in the Putney area with the headline number suggesting a price rally so far this year.
The average price of a home sold in the first quarter is up by 12.2%, however a closer look at the figures suggest a two tier market is developing. There is renewed volume at the top end of the market with transactions of detached properties appearing in the figures for the first time in several quarters. Prices of terraced houses have also rallied although it should be pointed out that only 15 changed hands in the period under review.
On the other hand flat prices are down by 8.8% so far this year having held up relatively well previously.
The average Putney property cost £434,198 over the first three months of this year which is slightly above the same period last year. The overall average is likely to be distorted by the renewed activity in higher priced properties and it is likely that most local homes have fallen in value over that period.
Volumes continue to be poor with turnover at about three quarters of what it had been three years ago.James French of Douglas & Gordon said:
"Despite all the doom and gloom predictictions that the property market was going slow in 2009 and that significant price drops would be effected we at Douglas and Gordon in Putney are finding quite the opposite in the summer market. We have experienced a busy market this year with plenty of new buyers registering and number of sellers decreasing steadily. In April 2008 the number of registered buyers was 680 over the 16 offices in London - this April the number was 1000!"
"Buyers confidence is returning and whilst overall property prices have fallen between 20% - 30% over the last year we expect some of this ground to be made up by the lack of available property. Responsible lending has (quite rightly) returned to the mortage market so it is important that buyers speak to a broker before embarking on looking at properties."
The Land Registry data for March for the country as a whole shows an annual house price change of -16.2%. This brings price levels back to those seen in August 2004.
London prices have fallen by 15.4 % to £299,613. Prices did rise slightly in March, the first time in a year the price index has seen a positive change.
The numbers are subject to revision as usually some properties are added late to the Land Registry's database.
Copyright notice: All figures in this article are based on data released by the Land Registry. The numbers are derived from analysis performed by PutneySW15.com. Any use of these numbers should jointly attribute the Land Registry and PutneySW15.com.
August 12, 2009