How will we know??????

GDB2222

Eon4 wrote: »

Apart from us saving a bit more money, what other benefits are there to hanging on?

I feel very confused!!!...how will we ever know when to move???:rolleyes:

If you feel that your sanity or security depends on owning a house, I guess you'll just have to buy now. From a strictly financial point of view, I would wait, as houses are falling in price at 2% a month at the moment.

Am I missing something if I couldn't see the difference between offering 20% below the asking price now....... or waiting until the market drops another 20% and hoping there is something suitable at that time?

Don't you think that people will take offers after the market has dropped by 20%? Also, whilst I think that 20% is a reasonable estimate, it could be a lot more.

'hoping there is something suitable at that time' - Why in heaven's name wouldn't there be something suitable? I think you are panicking unnecessarily about possibly missing the boat when house prices go up again. There was a huge bubble, and that's now deflating. It won't just reinflate itself again. Apart from anything else, the bubble depended on insane lending practices that are surely not going to be repeated for at least a few years?????

brit1234

I think that the events of the last week show that the days of easy credit are dead for the foreseable future. With that in mind more and more people are coming to believe in the 50% drop in prices. Last year those thoughts were dismissed as crazy, a year on they are starting to become more main stream with predicted drops ever increasing.

As for your Dreamhouse there is no harm in buying when you can sensibly afford even if the price goes down after. Some of us have no choice but to wait longer to get a foot hold at the bottom though.

What is fact is that prices are falling at their fastest rate ever. So you dream house will become a reality far quicker than other crashes, be patient.

GDB2222

I can understand people worrying that they might miss the boat if prices go up again in a hurry. I can't foretell the future, but in the last house price recession it took from 1988 to 1996 before house prices started to rise again. There was a period of about 3 years whilst prices fell continuously, followed by about 4 years whilst prices stayed about the same.

I can't guarantee that the same will occur this time around, but if it does there is no problem about answering the question: 'How will we know?' You just need to wait for prices to stop falling, and then there's no great rush to buy somewhere. Last time, there was a 4 year window. This time it could be longer or shorter, who knows?

wymondham

It's difficult to predict when the best time to buy will be, as the natural downturn is being interfered with by short term Government measures (stamp duty etc). I'm pretty sure things will still get much lower, especially once unemployment picks up.

If you've found the ideal place and happy with the way of the market, then go for it!

Eon4

Cheers everyone!
I wasn't confused yesterday before we viewed this house....I wasn't worried that nothing would come up in the future so I guess it is this house that has unsettled me.

Pinkshoes.....I can say this house says "yes" to all your points but it hasn't made me feel "wow I have to have it!"...??

I am not desperate to have a house right now and we had planned to leave it til next year to look properly......we were not meant to like this house yesterday!

My husband is willing to put in a low offer (20% of asking price) and move if he accepts and let it go if he doesn't....he has already dropped 7% in his first 2 months on the market (man who has just lost his wife and wants to downsize after 30 years in that house.....I also don't want to mess him about.)

Gorgeous_George

Eon4 wrote: »

How will we know when to jump back into the housing pool again?

That's easy.

With falling prices, HPC.com will have no reason to exist. After congratulating each other for being spot on - a t l a s t, they will disappear until prices start to rise again.

That is when to buy.

GG

bristol_pilot

I may consider buying a house again when unemployment has peaked - probably above 3 million - and is falling.

Nenen

Tiger_greeneyes wrote: »

but if you're going to be there long term, what does it matter what the market is doing? It's only relevant when you come to sell it.

I agree with much of what you said Tiger_GE about a home etc but, for us anyway, it does matter what the market is doing... if we bought now then we'd have to take on a fairly hefty (but theoretically possible) mortgage to get a 'just-about-OK-for-us' house in this area and it would mean having to be very careful with our budgeting each month to pay the mortgage we'd need. However, if we wait until prices drop (assuming they will) then for every 10% drop that's at least £25,000 less mortgage we have to take on... meaning we'd have more spare cash each month and a much more pleasant lifestyle... could even conceive of paying the mortgage off early that way. Much as I'd like my own house again, I think it is worth hanging on, for at least a few more months, if my nest-building instinct can stand it!

Regmir

Only my personal view but I think the prices have now bottomed out!
Just look at what is happening at the other side of the Atlantic - as soon as financial institutions can off load their bad debt, thing can change overnight.

pinkshoes

Eon4 wrote: »

Pinkshoes.....I can say this house says "yes" to all your points but it hasn't made me feel "wow I have to have it!"...??

Then perhaps it isn't "the one"! Ours was definitely love at first sight!

Eon4 wrote: »

My husband is willing to put in a low offer (20% of asking price)

OF the asking price or OFF the asking price?!?!

20% "of" would be darn cheeky!