Is your East London property falling in value? If so, does it matter?
7th September 2022
7th September 2022
These are just some of the words used to describe the current housing market from estate agents in Walthamstow to East Ham via Hackney.
In essence, they are frightened to use the word ‘falling.’
But I’ll call a spade a spade.
Values have indeed fallen from their highs of 6 months ago (yup, even in London) and whilst I’m not in possession of a crystal ball, with all the headwinds from the energy crisis, inflation and interest rates, further pressure on values is surely likely.
Each to their own on this front but I do believe that purchasing a home should be viewed as a long term proposition – 3-5 years plus.
Sure, any purchase made today could be worth a little less next year. But if it’s a home you love, it suits your needs and is available to buy right now, does it matter if it’s worth say £10,000 less if you have no intention of selling? I hope that doesn’t sound flippant.
For those upsizing, a property market with declining values could and in my opinion should be construed as good news.
Why? Well, if your home has fallen in value by say 5% then of course so has the larger home you wish to move to. A 5% fall on the more expensive property in comparison to your home means the financial gap between the two properties narrows.
Those considering selling may look at all the negative press and decide to batten down the hatches and wait until 2023. This is understandable but against a rising interest rate environment, now is likely to be a superior time to sell prior to the Bank of England jacking up rates further suppressing appetite from buyers.
Rest assured, the market is still very much alive.
I was instructed to sell a mid terrace house in Stratford, not an area I sell in often but I’d been recommended.
I’ve been blown away with the interest. 31 viewers over the course of 10 days and 6 offers at or over asking price isn’t too shabby and demonstrates to me at least that if priced right, there’s still very much an imbalance of supply versus demand in the East London property market.
Downsizers – those shifting from a more expensive, larger home to a cheaper property. Any percentage decline in the market will be hitting them in the pocket.
My only advice to those not selling but do have a mortgage is to keep an eye on when you may need to remortgage. Over paying on the mortgage before rates creep up is easier said than done but surely worth doing if possible to reduce the amount of interest to be paid over time.
If you’re not selling and have no mortgage then ‘you’re living the dream!’
I hope this helps!
I am a local property expert, offering my services in Forest Gate, Highams Park & Chingford, Leyton, Tottenham, Hackney, Walthamstow, East Ham, Plaistow and surrounding areas.