Primelocation and house prices trend in London

You wouldn’t believe this.

Apparently, the whole world real estate is going belly up, with the exception of -guess?- London!

This accordingly to www.primelocation.com. If one had to believe their survey, in these troubled -t0 say the least- times, when US real estate is down 20% YoY -and this is for the lucky cities!-, London had a just temporarily dip of about 6% -May 08 to October 08), to then start a raising trend that brought house prices in the European capital just 3% shy of the all-time highs! In the meantime, country-wide index is down a more ‘reasonable’ 20%.

Stock of unsold houses at all-time highs? It doesn’t matter, the prices is hanging up there, doesn’t move.

Massive layoffs in finance, and in the broader economy? No impact. Prices don’t go down.

Foreclosure, bankruptcies? No impact again, London real estate knows one way only: up.

Commercial real estate sinking at a speed not seen before? Nada.

If only I hadn’t witnessed what has been really happening in London in the last 18 months:

• asking prices are going down, big times! You still have some crazy asks out there, probably fishing for rich foreigners, but asks are going down
• you pay considerably less than the ask: up to 10-15% less. Quite different from 18 months ago, where houses were auctioned and went for 5-10% above ask
• I would reckon in my area (Westminster) asks are down at least 10%. Similar story in another area I track (’cause I like): Chelsea.

Go figure! I always though primelocation guys were smoking something really good. Now I want to know what