Going ahead with house sale amid recession ?

MobileSaver

leftism said:

We've just had an offer accepted on a better house in a nicer area... for less money!

Well done. You missed out on a perfect house in a perfect location and just four days later have an offer accepted on an even more perfect house in a more perfect location for less money; quite incredible really, make sure you buy a lottery ticket today too...

leftism

MobileSaver said:

leftism said:

We've just had an offer accepted on a better house in a nicer area... for less money!

Well done. You missed out on a perfect house in a perfect location and just four days later have an offer accepted on an even more perfect house in a more perfect location for less money; quite incredible really, make sure you buy a lottery ticket today too...

I don’t feel THAT lucky. This house buying hell has been going on since last year. And I missed out on the original house because I lost all my work and couldn’t afford it. 

But yes, I suppose this bit is quite lucky. 

wazza07

brett19852010 said:

Also closely monitoring the South Manchester property market and buying now. There are many more properties for sale now than during the lockdown when it was just a handful per day. Prices seem to be dearer now. There is certainly no evidence of any reductions on a grand scale, yet. There will still be plenty of people in decent employment to snap up desirable properties in greener areas going forwards.
Possibly some decreases around the airport  depending on the demand for rentals but I think S. Manchester prices will hold in the nice areas and increase. Believe me I'd love to see a drop in prices as it would purely benefit me as a buyer.
Not really sure if what you have done here is logical in reducing your offer and thereby killing the deal for yourself. Reference to the 'current climate' appears to be a meaningless soundbite. The climate was in fact multiple persons interested, you went big on your offer, but your committment dwindled. 
There was no evidence of price crash yet so you were making reference to something which is purely a speculative view of the future of the market and 'current climate'.
Most of S. Manchester housing stock is old so it is arguably to mess about when you start to try to re-negotiate after the survey, just a ploy to get money off (unless there was a really serious undisclosed structural issue). It would have been better to make an offer in the first place which would anticipate some repair costs.
Folk on here interested in a price crash will often encourage others to reduce offers and here is an example of losing the deal. You will be told by some that you have done the right thing.
How you feel about that is up to you but you now really must hope for the price crash because my fear would be prices continuing to go up.

We're looking in South Manchester/Stockport as well; mainly Heaton Moor/Mersey/Chapel, Woodsmoor and Davenport. Similiarly to you, I've not really seen any reduction in price (if anything they've gone up). Competition is quite fierce as well, the well presented properties are flying off and even houses that were struggling to sell pre-COVID have now sold as well. We're quite disappointed as our ideal house came up but went before we could even view it as a cash buyer had offered significantly over asking price. We had a purchase fall through recently owing to the vendor freaking out with COVID so we've decided to continue with the sale of our house and go into rented, hopefully putting us in a better position. We are a bit worried about being priced out in the Heatons (if prices continue to rise) but I guess we'll have to see. It's positive so many houses are coming up - just hope it continues! We're looking for our forever home so not necessarily looking to grab a bargain, we're just hoping we don't get priced out. 

leftism

@wazza07 I was in a similar position to you. In a similar area. It seems people have added money to asking prices to counteract any predicted dip. We felt like giving up when each house we liked had huge amounts of viewings. But don’t lose hope. 

One then just popped up for us last week, exactly what we wanted. Fewer viewers because it wasn’t done immaculately. They wanted a quick sale and we could move fast, so we agreed the sale on the same day (under asking). 

We couldn’t wait because our mortgage offer would’ve gone. But if we could’ve waited until next year, we probably would have.

andycorleone

I Honestly don't understand people. After all what happened in the past few month recision is unavoidable. The consequences are not immediate but imminent  (Usually 12-18 Months).

Do you have any friend or Family that have lost their Job recently?  If not maybe you should invest more time socialising instead of asking these question in an online forum, So you could have a more human experience of current circumstances.

If you don't mind buying an already overpriced house, which next year will cost significantly less  (This is not rocket science but a simple fact)  Only good know what will happen in 5 years.

Not Job is secure and chances of getting a new one are very low these days. this is a domino effect, This in only the beginning. things are going to get worse before get any better. 

I'm in the same boat as you, The two wise decision I can make at this point is Wait or ask for a 5%  reduction of you initial offer.

MobileSaver

andycorleone said:

which next year will cost significantly less  (This is not rocket science but a simple fact)  Only good know what will happen in 5 years.

No, it is not remotely fact but is pure speculation; prices in some areas may go down, prices in others may go up - most people in my neck of the woods thing we're about to see a mini-boom as city dwellers realise the benefits of country living.

No-one knows for certain what will happen but it is odds on that the average house price will be higher in five years than it is today...

GDB2222

MobileSaver said:

andycorleone said:

which next year will cost significantly less  (This is not rocket science but a simple fact)  Only good know what will happen in 5 years.

No, it is not remotely fact but is pure speculation; prices in some areas may go down, prices in others may go up - most people in my neck of the woods thing we're about to see a mini-boom as city dwellers realise the benefits of country living.

No-one knows for certain what will happen but it is odds on that the average house price will be higher in five years than it is today...

If I felt confident that house prices will be higher in five years, I’d agree with you. Even if there’s a dip, it’s really hard to get the timing just right. However, we may be in for a major recession that will last years, in which case prices may be lower in five years. 

I don’t know where you get your 'odds on' from? Is it just based on extrapolation of past trends?

MobileSaver

GDB2222 said:

MobileSaver said:

No, it is not remotely fact but is pure speculation ... it is odds on that the average house price will be higher in five years than it is today...

I don’t know where you get your 'odds on' from? Is it just based on extrapolation of past trends?

"Odds on" is a turn of phrase meaning "more likely than not."

How many times in your lifetime have average house prices been lower five years later?

leftism

MobileSaver said:
"Odds on" is a turn of phrase meaning "more likely than not."

How many times in your lifetime have average house prices been lower five years later?

How many times in your lifetime has there been a no deal brexit, a recession and a worldwide pandemic at the same time?

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leftism said:

How many times in your lifetime has there been a no deal brexit, a recession and a worldwide pandemic at the same time?

Generally even the most pessimistic, scaremongering predictions don't think any recession will last for five years...

Do you believe house prices will keep falling for the next five years?