Reasonable increase in house price in 10 months?

wjr4

We viewed a property recently that we liked and put an offer in - it was rejected as it was too low below asking price - understandable. However, I feel that the house has an asking price that is a lot higher than it is valued & this would worry me when it comes to the mortgage valuation. Is a 13% rise in 10 months normal? It is not in the most desirable of areas, has not parking, needs work and in the 10 months they have lived there - the vendors have not made any improvements and have removed a sink from the downstairs bathroom. I'm not sure if I am being silly but how much would you expect a house price to rise by in 10 months?

Thank you for your help

Crashy_Time

In the present environment I wouldn`t expect a house price to rise, I would expect it to drop! Tell the vendor to stick to selling ice-cream.

Guest101

rjw4 wrote: »

We viewed a property recently that we liked and put an offer in - it was rejected as it was too low below asking price - understandable. However, I feel that the house has an asking price that is a lot higher than it is valued & this would worry me when it comes to the mortgage valuation. Is a 13% rise in 10 months normal? It is not in the most desirable of areas, has not parking, needs work and in the 10 months they have lived there - the vendors have not made any improvements and have removed a sink from the downstairs bathroom. I'm not sure if I am being silly but how much would you expect a house price to rise by in 10 months?

Thank you for your help

Does it matter? Your offer was rejected, it's basic supply and demand.


they have it, you want it

Pixie5740

Which part of the country are we talking about? How does the asking price compare with sold prices in the last 6 months of similar properties in the area?

hazyjo

Depends entirely on the area. Mine's nearly doubled from £274k to £500k+ in 3 years. Same for a lot of E4.


Other areas have dropped.


Jx

bouicca21

Property in my area has risen by about 30% over the last two years, and they'd been rocketing the year before that too.

Hoploz

You must compare like with like. Presumably you have seen other properties at a similar asking price, but despite all the shortcomings you list, you still like this one better than the others?

Looking at sold prices is interesting but has little relevance to current market prices. They are always published a couple of months after completion, and since an average purchase takes 3 months or sometimes more to get to that stage, you are really comparing the price not from 10 months ago, but from market conditions a minimum of a year ago, and potentially a year and a half.

There is a little dip at the moment, but there has been a good deal of growth in most parts of the country in the past year or two (I'm told 8% in the past year around here) so the figures you suggest are not unfeasible.

But if there's another property you like as much, which is cheaper, then choose that one instead.

phoebe1989seb

Definitely depends on where it's located, OP.......

Where we currently live - West Midlands - vendors are still being over optimistic, despite most things taking an absolute age to shift. A neighbour purchased a large four bed detached 11 months ago, has done no work to the house (that was already very run down), except wreck a lovely, large garden and get PP to divide the property into two. He has it on the market for 35% more than he paid!

I've threatened to eat my undies if he sells it for anywhere near AP!

Another (considerably smaller) house nearby was purchased 12 months ago, underwent a cheapo looking refurb and is now on the market for double the original purchase price. Compared to sold prices of similar properties in the area I would guess it is overpriced by around 100k.

Otoh, flats adjacent to the one DS sold in SW London 18 months ago have increased by approx 20%.......

pinkshoes

Why would you want to buy a house in a grotty area with no parking??

wjr4

pinkshoes wrote: »

Why would you want to buy a house in a grotty area with no parking??

Unfortunately if we want to live in our town we don't seem to have much other choice.

wjr4

Thank you everyone so much for your opinions/help! I should have put the location - it's the outskirts of Chelmsford, Essex. We aren't going to put another offer in for this property but I was just wondering for future properties if my expectations are correct.. I know there is quite a lot of demand here but unsure of the area. We want to make the most of our help to buy ISA but not sure we will find anything under £250k