Unequal House Price Falls

geeba88

I realise that each region has its own unique picture in term of house price falls. However I’m wondering whether what’s currently happening in my area isn’t going to be particularly advantageous to me trading up.

To explain further, we have a 3 bedroom (valued at £130k at the peak), and need to move to a 4 bedroom, the sort we’d like was like was going for around 180k at the peak.

I’ve been using the logic that if by next year we’ve had a reduction of around a 33%, our property will have dropped to around 90k, but the kind of property we’re looking to move to will have dropped from 180k down to 120k. The ideal scenario being that a 50k mortgage increase will have shrank to 30k.

However, after speaking to an estate agent yesterday, my wife was told in order to secure a sale in our area we’re already down to a 100k value for our property. Looking at Rightmove, there is no way that the bigger 4 bedroom properties have experienced this level of reduction.

The estate agent told my wife that properties like ours (ex council) were experiencing larger falls due to the lack of first time buyers entering the market.

My concern is therefore whether or not in a years time those ladder rungs will have compressed – or will that step up still be the big as it is present? In which case there’s little point holding off putting our property on the market.

I’m even considering selling up to rent until next year – the logic being we’ll be in a strong negotiating position for anyone under pressure to sell by then.

Any advice appreciated :beer:

Thrugelmir

geeba88 wrote: »

I realise that each region has its own unique picture in term of house price falls. However I’m wondering whether what’s currently happening in my area isn’t going to be particularly advantageous to me trading up.

To explain further, we have a 3 bedroom (valued at £130k at the peak), and need to move to a 4 bedroom, the sort we’d like was like was going for around 180k at the peak.

I’ve been using the logic that if by next year we’ve had a reduction of around a 33%, our property will have dropped to around 90k, but the kind of property we’re looking to move to will have dropped from 180k down to 120k. The ideal scenario being that a 50k mortgage increase will have shrank to 30k.

However, after speaking to an estate agent yesterday, my wife was told in order to secure a sale in our area we’re already down to a 100k value for our property. Looking at Rightmove, there is no way that the bigger 4 bedroom properties have experienced this level of reduction.

The estate agent told my wife that properties like ours (ex council) were experiencing larger falls due to the lack of first time buyers entering the market.

My concern is therefore whether or not in a years time those ladder rungs will have compressed – or will that step up still be the big as it is present? In which case there’s little point holding off putting our property on the market.

I’m even considering selling up to rent until next year – the logic being we’ll be in a strong negotiating position for anyone under pressure to sell by then.

Any advice appreciated :beer:

House prices are determined by supply and demand. There is no rational behind all houses falling equally in % terms.

Personally I would sell my existing house and rent. Then I'd be in the position to buy when the right house came along.