Or so some London real estate “experts” say. Prices for luxury homes off only 20% from this time last year which, believe it or not, is a good sign.
The average value of houses and apartments costing more than 1 million pounds ($1.6 million) in the most expensive neighborhoods gained 1.6 percent from April, the London-based property broker said in a statement today.
Prime residential properties have lost value on an annual basis for 11 straight quarters and won’t recover until the second quarter of 2010, according to Knight Frank. Prices will probably fall by a total of 30 percent from the market’s peak in March 2008, the broker estimates.
“We are approaching the back end of the price declines,” said Liam Bailey, Knight Frank’s head of residential research, by telephone. Property values won’t return to the levels reached last year until 2014 at the earliest, he said.
Here in Greenwich, while it may be true that the prices of houses actually selling are approaching the bottom, the price of our unsold inventory still has a long way to fall.