London luxury home prices collapse. Yeah, but our houses don’t stink of fish and chips and rancid oil. We do take out.
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I thought high priced homes weren’t suppose to drop because the owners were all knee deep in liquidity (just say no to low prices says Mad Monkey like Nancy Reagan use to say). Yet Knight Frank says that prices are dropping fastest on record in London because the buyers of high end homes (presumably the same wealth demographics as owners) cannot get mortgages.
I don’t get it: high priced homeowners can sit forever waiting for their price (because they have cash), but high priced homebuyers need money (mortgages) to purchase. Seems odd, buyers need mortgages, but sellers aren’t under pressure (from their mortgages).
Of course, there could be another explantation. Even the rich, with cash, have come to their senses that prices are simply too high and they won’t (not can’t) over pay anymore.
Caveat: the money dynamics at $10-20 million price range are undoubtedly much different from the $1 to $10 million (i.e. use of borrowed money).
LOL…though not sure which town has worse grub…Greenwich or London?
At peak, Lond housing was ~2x cost of 15 CPW….combination of US-trained IB/HF/PE guys and various 3rdWorld plutocrats bidding up prices…much like Manhattan’s dynamics….lots of margin calls and diminished net worth among (former) plutocrats….
Greenwich may benefit as many US-based HF’s close/shrink offices in places like Lond/HK, etc and bring partners back to NYC/Greenwich…and others flee high-tax Manhattan for Greenwich’s lower inc taxes
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