What is happening to property prices in North London?
While doing extensive data testing prior to the launch of REalyse v3.0, I spotted something that at first I thought was an indication of an error in our own system.
The number of properties being put onto the property market in N1 (Islington, North London) had increased significantly since the start of this year.
By cross-referencing the asking prices in the same area, it became clear that this increase of available properties had in fact changed the market. The asking prices in the area had plummeted at the same time (light blue line on the graph below), falling by -2% since February 2018.
Perhaps not so much of an anomaly as I first suspected, but it was having an immediate effect on supply and demand in the market. Such analytics have since alerted me to the possibility of a wider trend.
Lastly, I looked at the discount (difference between asking prices and achieved prices) across a few other areas of North London, all of which showed that discounts are indeed increasing.
What exactly does this trend mean? Well, it seems that a large number of people are now trying to sell their properties into a relatively soft market. This is forcing down prices and creating more competition among sellers, who are being forced to accept lower offers.
Good deals are out there for shrewd buyers, but perhaps this is a sign of something else going on in the market and wider forces at work. This trend is certainly worth keeping an eye on.
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