Market Analysis Spring 2011


Figure 6 London - most popular reasons to move December - February 2011


Central London - most popular reasons to move


December - February 2011 (%)


10 20 30 40 50


0


Central London - most popular reasons to move


December - February 2011 (%)


2010


10 20 30 40 50


2010


10 20 30 40 50


0


Central London - most popular reasons to move


January 2009. Registrations rose 90% between December 2010 and January 2011, however, the total number of registrations over December, January and February is 25% below that of the year before. This drop can be attributed to the wintry conditions exacerbating the traditional Christmas slowdown. (Figure 4&5)


December - February 2011 (%)


Family movers and those looking to upsize accounted for nearly 40% of London’s buyer market between December 2010 and February 2011 and the overall fall in the


0 London - Time to Sell (WEEKS)


Figure 7 London - times to sell (weeks)


20.0 2011 e* 2012 e*


% 1.8% 2.1% % 3.6% 2.1% % 4.5% 3.2% 1.58


% 1.8% 2.1% % 3.6% 2.1% % 4.5% 3.2% 8


2011 e* 2012 e* 1.58


10.0 15.0


% 1.00% 2.10%


0.0 5.0


1.54 % 1.00% 2.10% 1.54 20.0


10.0 15.0


10.0 15.0


0.0 5.0


0.0 5.0


London - Viewings before Sale Agreed


Figure 8 London - viewing before sales agreed


20.0 London - Viewings before Sale Agreed London - Viewings before Sale Agreed 20.0 20.0


10.0 15.0


0.0 5.0


10.0 15.0


10.0 15.0


0.0 5.0


0.0 5.0


Avarage Asking Prices - London


£490k £510k £530k £550k £570k


£450k £470k £490k £510k £530k £550k £570k


20.0 London - Time to Sell (WEEKS) London - Time to Sell (WEEKS)


volume of stock available has squeezed the supply of suitable properties for these buyers even further. Three bedroom houses and two bedroom flats – which are typical target properties of these types of buyer – remain the scarcest property types on the market. (Figure 6)


Strong demand and weak supply a gift for sellers


The surge in buyer interest in January and the low number of properties on the market has caused a drop in the average time taken for properties to sell in January and February. Falling buyer interest over the second half of 2010 caused the average time to sell to creep up from just under five weeks in June to just under ten weeks in December. However, renewed interest from buyers and low levels of stock has brought the average time to sell down to around seven weeks in January and February.


100 150 200 250 300


50 0


100 150 200 250 300


100 150 200 250 300


50 0


50 0


Sales Appra Sales Appraisals Sales Appraisals


Central London - Prospecti Jan2009 = 1


Interestingly, the average number of viewings a property receives before a sale is agreed – which dropped to 13 in December as buyer demand slumped – has risen to an average of around 15 in January and February despite the fall in average time to sell. This rise is consistent with the increase in buyers and can be attributed to vendors trying to achieve the best price for their property by encouraging multiple viewings. (Figure 7&8)


100 120 140 160 180 200


20 40 60 80


0


100 120 140 160 180 200


20 40 60 80


0


100 120 140 160 180 200


20 40 60 80


0


Central London - P Jan


Central London - Prospectiv Jan2009 = 10


Central London - Sales A Jan


Central London - Sales Appraisals Jan2009 = 1


Central London - Sales Appraisals Jan2009 = 1


Avarage Asking Prices - London


Market Analysis Spring 2011


7


Upsizing Downsizing


More desirable area Emigration


Relocation due to work Death


v-10 Jan-11


-10 Jan-11


-10 Jan-11


0 1


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Upsizing Downsizing


Upsizing Downsizing


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


More desirable area Emigration


More desirable area Emigration


Relocation due to work Death


Relocation due to work Death


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 M


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 M


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 M


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 M


Price (£)


Price (£)


0 0


10 0


10 10 10 0 0


10 10 0 1 1


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