Prices aren’t falling, they’re stalling
Published: 03/04/2019 By Jane RobathanClaims that asking prices are falling or rising are one thing, but it’s sold prices you need to track. I’ll show you how to get a clear understanding of what is really happening in your local property market.
In SE15 and SE22, prices have simply stopped rising furiously. They aren’t really falling.
Let’s look at some numbers to get a sense of what is really going on.
Both areas have risen in value at 390% (SE22) and 400% (SE15) from February 200 to December 2018.
Using Land Registry data, let’s look at average sold prices from every year since 2012 running from January to December. The sharpest rise in SE22 happened in 2013 when prices increased 54.2%. For Peckham and Nunhead, 2016 saw the biggest hike at 21.6%, although 2013 also saw a big increase at 20.5%.
The reality is that from January to December last year, East Dulwich saw a 7.5% increase in the average sold price while SE15 saw a 1.3% increase. Over the last two years, East Dulwich has increased 11.9% and Peckham and Nunhead by 11%.
If you want to drill these figures down into different types of property, you can use this tool.
The truth is that our microclimate is doing ok. Slower increases equal a more sustainable market. When prices inflate too quickly, they burst with an ensuing drop that can take a few years to fully recover.