Panic in the capital, as property sellers start to accept prices under the asking price? Panic might be a bit of an exaggeration but this is now somewhat of a reality as the slowdown in the London property market takes hold.
But the latest sale figures from leading online estate agent eMoov.co.uk indicate there is no need for alarm just yet with sold prices still achieving 99% of asking price.
The estate agency digital disruptor eMoov continues to outperform its offline competition, highlighted Hometracks September average of 96%.
During January to March eMoov sales figures showed London property prices achieving an average of 102%. During this time their most successful sale was a flat on Battersea Park Road, where they achieved £75,000 (17%) over the asking price (£450,000). This property seller also saved an additional £10,000 on selling fees by using online agent eMoov.
Sales performance for eMoov between August and the end of October has mellowed to 99%, a decline of 3% since the start of the year, but eMoov has seen London sales volumes increase during the summer as talk of the cooling market began to surface. This hasn’t stopped property buyers as the online agent has seen transactions rise by 55% over the past 3 months in comparison to Q1 of 2014.
Last month, eMoov released its quarterly Property Hotspot Index. It highlighted a cooling, if not a deep freeze to demand for London properties. In February 55% of all properties listed in London had an accepted offer on them, this dropped to 50% in June and in September this had slumped down to just 41%.
Property Expert Russell Quirk, CEO of online estate agent eMoov.co.uk commented “Our sales statistics show both a decline in demand for property in London and an increase in inventory as sellers look to cash in before the potential drop in house prices. The fact is, there are now more properties available for buyers, so they can be more selective about offering. The power shift has moved slightly, and we face a more balanced market. However, we continue to outperform our high street competitors“