what a crazy housing market

ThatDawnOne

We tried to book viewings for several houses in May, only to be told they were already under offer, or that the EA couldn't fit in any more viewings for over a week as they had so much on.  Finally lucked out on one that had just come back onto the market, and the vendors just wanted the original price that had been agreed by the previous buyers. They could have got at least £10k more than that in the current market but I wasn't about to tell them that. Now we just have to wait for the searches to come back so we can sort out completion dates.
There is nothing in our price range on the market in our area that even comes close to the house we're buying (North West England, so not massively expensive houses compared to the national average, but there has been a dramatic upturn in house values this year)

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nicknameless

Our search goes on.   In the last 2 weeks we've viewed 2 properties.  Offered on the first 15k below asking on £350k property - good offer we think (10% more than vendor paid less than 18 months ago) - we are not in a chain with 1/3 cash deposit - offered to sit it out whilst sellers find their property.  Answer was no and the house has not SSTC yet despite EA assuring they had lots of other viewings lined up.

Viewed one on Monday.  Needed 20-25k to bring it up to scratch.  Considering offering just below asking only to be told by EA that 2 cash buyers had both offered much higher than asking.  Ludicrous offers on the property IMO - but then what does my opinion count for in the face of that.

We view again on Saturday - another that needs work.  Another block viewing.

Crashy_Time

Flugelhorn said:

just been to see a property - house over 500K, multiple people viewing -at least one offer already in, much work needed, lots of bad DIY and covering up of problems etc - very uninspiring

just wondering how long it will be before the madness stops  and people can take time to consider whether the property is really worth it ?

When mortgage rates rise people`s minds will become very focussed on the amount of debt load they are carrying.

TripleH

I was told to get a bid in on a property on the market if I was interested as there were offers on the table.

I wasn't (as I thought it overpriced for the area) and it was still on the market 4 weeks later whenI last checked.

I also agree with Crashy, I think a lot of people might come unstuck if interest rates rise in 5 years time (or so) when mortgage terms are up for renewal. We have always set ourselves a price limit that is capable of accommodating interest rate increases.

mubeye

Crashy_Time said:

Flugelhorn said:

just been to see a property - house over 500K, multiple people viewing -at least one offer already in, much work needed, lots of bad DIY and covering up of problems etc - very uninspiring

just wondering how long it will be before the madness stops  and people can take time to consider whether the property is really worth it ?

When mortgage rates rise people`s minds will become very focussed on the amount of debt load they are carrying.

Sure, but they might have paid off a big enough chunk of their mortgage by that point, to not care. 

nicknameless

Just looking to vent.

Decided to view a property today that had been advertised for a while (recently reduced).  Due to view this p.m. (arranged this morning) but then had phone call from EA just now that vendors have accepted an offer now.  If I were the suspicious type I'd suspect our interest was sufficient for the EA to be able to wangle extra money out of a buyer who had already offered so that the vendor accepts their offer.

The hunt goes on.

TripleH

It's either that or the price drop.

We looked at a property that had been on the market for a while and put in an offer to find someone had offered more.

It might have been an individual who had viewed, liked the property but not the price (may/not made an offer). When the price dropped they decided it was low enough for them to make an offer.

Thrugelmir

mubeye said:

Crashy_Time said:

Flugelhorn said:

just been to see a property - house over 500K, multiple people viewing -at least one offer already in, much work needed, lots of bad DIY and covering up of problems etc - very uninspiring

just wondering how long it will be before the madness stops  and people can take time to consider whether the property is really worth it ?

When mortgage rates rise people`s minds will become very focussed on the amount of debt load they are carrying.

Sure, but they might have paid off a big enough chunk of their mortgage by that point, to not care. 

Mortgage terms have become longer and longer over the past 40 years. Surprising how little capital you repay in the early years of the mortgage. 

getmore4less

Thrugelmir said:

mubeye said:

Crashy_Time said:

Flugelhorn said:

just been to see a property - house over 500K, multiple people viewing -at least one offer already in, much work needed, lots of bad DIY and covering up of problems etc - very uninspiring

just wondering how long it will be before the madness stops  and people can take time to consider whether the property is really worth it ?

When mortgage rates rise people`s minds will become very focussed on the amount of debt load they are carrying.

Sure, but they might have paid off a big enough chunk of their mortgage by that point, to not care. 

Mortgage terms have become longer and longer over the past 40 years. Surprising how little capital you repay in the early years of the mortgage. 

Rates are lower so people pay off the debt faster in the early years.

there is a leveling effect.