House market

Zither

I was reading the Daily Mail (I know...) earlier and saw this story:

http://www.dailymail.co.uk/news/article-2720949/Property-price-crash-happen-months-sellers-finally-outstrip-buyers-theyll-continue-rise-year.html

Property price crash could happen within months as sellers finally outstrip buyers (but they'll continue to rise for another year)
House prices have soared in London and across Britain over the past year
Royal Institution of Chartered Surveyors says houses now exceed buyers
Prices likely to rise for 12 months but then fall, bringing surge to an end

I thought it was interesting to see national media speculating that prices will drop.

Typical - just as I was thinking about buying!

[Deleted User]

It's best to hold off if you can afford to wait a year or two. Aside from anything else, the mere fact that many people are waiting will cause a crash. Then just hold your nerve as long as possible to force prices down as low as possible.

blackshirtuk

If this is a house to live in , not an investment, the price fluctuations are irrelevant, provided you can meet the interest payment in the mean time.

a house is a long term commitment, of 25+ years, even if you move during this time. The value of the money you borrow will erode with time due to inflation, while at the same time house prices will increase over the long term for the same reason.

The actual price paid at any particular time is just a function of wages at that time.

my Dad bought house 60 years ago for £2000 but his wage was £2 per week. Really all that changes is the numbers.( the year after he bought it a similar house sold for £1980 should he have waited?)

So try not to get hung up on if the price is good now or will be better later, try to find a house that fits your criteria or is indeed your dream house.

Yes you may well look back in a year and think i could have got it cheaper, but in 20 - 30 years it will worth a lot more than it will be next year.

[Deleted User]

blackshirtuk wrote: »

If this is a house to live in , not an investment, the price fluctuations are irrelevant, provided you can meet the interest payment in the mean time.

If you can wait a year and pay significantly less, as well as avoiding negative equity, price fluctuations are extremely relevant.

ukcarper

DELETED USER wrote:

If you can wait a year and pay significantly less, as well as avoiding negative equity, price fluctuations are extremely relevant.

Trying to guess them is also very difficult if not impossible and they could just as easy be higher in a years time.

HAMISH_MCTAVISH

DELETED USER wrote:

It's best to hold off

Says the poster that joined this site in 2007..... That's a lot of waiting..... Almost a third of the way through a mortgage in fact.

In the meantime, rents have soared to record highs, house prices are above the previous peak (on average), and the housing shortage is getting worse every year.

If you had "held off" from buying in 2007 in my neck of the woods and rented instead you'd be well over £100,000 worse off.

The best way to lower your lifetime housing costs is to spend as little time as possible buying a house for your landlord.....

HAMISH_MCTAVISH

DELETED USER wrote:

the mere fact that many people are waiting will cause a crash. .

Doesn't seem like that's happening.

The number of mortgages taken out to fund house purchases increased in June, according to figures from lenders which suggest that new rules on loans have not dampened the property market.

Data from the Council of Mortgage Lenders showed that 60,500 house purchase loans worth a total of £10bn were taken out during the month, a rise of 5% by number and 6% by value on May's figures.

Compared to June 2013, the figures were up by 15% and 23% respectively.

More than half of those loans were taken out by home movers, who accounted for 31,900 of the mortgages advanced, 4% up on May, however the number of first-time buyers showed a bigger month-on-month increase, rising by 7% to 28,600.

Despite the introduction of new affordability tests in April, which force lenders to check applicants' outgoings as well as their income and to stress-test their borrowing to ensure they can still afford repayments if interest rates rise, the amounts borrowed by first-time buyers increased in June.

The average first-time buyer borrowed 3.47 times their gross income to fund their purchase, compared to 3.46 in May, while the typical loan size increased by more than £2,000 to £123,865. The typical gross income of a first-time buyer household also rose, to £37,000 from £36,500 in May.

Paul Smee, director general of the CML, said: "For the second month running since new FCA rules took effect, lending characteristics remain similar to the market beforehand.

"We now feel confident that, as we would hope, the mortgage market review [MMR] effect is more gentle dampener than hard brake."

Investors' appetite for property continued to grow, with the CML reporting a 23% year-on-year increase in the number of buy-to-let loans. A total of 15,600 landlord mortgages were advanced, worth £2.2bn.

http://www.theguardian.com/money/2014/aug/11/june-mortgage-figures-property-market

rxg111

I can only speak of my experience in the London property market, which, as we all know, is in a league of its own.

I'm thinking of buying an investment property, and at the beginning of the year, I was increasingly disheartened by the preposterous prices; difficulty in getting viewings; and the feeling there was a lot of panic-buying going on.

Since June, however, I'm getting pestered by EAs to come and view properties (this was unheard of before) and my inbox is full-to-bursting with new properties for sale. There are also new-build developments with unsold plots, which in the past would've been snapped up by overseas investors long before Londoners even got a look-in.

Whilst I don't think we're heading for a crash, it certainly feels as if the peak has passed, and corrections are being applied. I'm going to sit tight for around 12 months to see what happens next...

[Deleted User]

HAMISH_MCTAVISH wrote: »

Says the poster that joined this site in 2007..... That's a lot of waiting..... Almost a third of the way through a mortgage in fact.

What makes you think I was trying to buy a house in 2007? What a bizarre post.

quicklee99

DELETED USER wrote:

If you can wait a year and pay significantly less, as well as avoiding negative equity, price fluctuations are extremely relevant.

You could be renting at say £750 a month, if you wait a year that's £9k. That might wipe out any potential negative equity too.