Market slowdown coming? Wwyd?

Woolsery

GDB2222 said:

Sarah1Mitty2 said:

rigolith said:

Prices will never come down significantly. There might be temporary reductions as we go into recession and massive inflation, but you will need to get lucky to actually benefit from it.

How do you mean, "get lucky", won`t everyone know what is happening?

What she means is that it might not be worth trying to game the market. If you sell and put your equity on deposit, you might benefit if property prices drop a great deal, as you can then buy a better house after prices drop.

However, you'd be paying estate agency fees, stamp duty, two lots of removals, rent, etc. So, you'd need quite a large price drop just to pay for your expenses. 

Plus, you'd need nerves of steel to buy in at the bottom of the market, just when things look grimmest.

And, of course, there's the risk that prices don't drop at all, and you are out of the house market whilst prices just keep going up.

No one knows where the bottom is until it has passed. It was accidental that we bought right at the bottom in 2009, but by then we'd seen banks fold and were worried about being house-less, despite the reassurances of the FCA. Far from being spooked by buying, or thinking drops might go further, we were relieved something came along that met our needs and we could do a deal.

We didn't set out to game the market at all; a series of unfortunate events dropped our sale into the dip. Once there, however, we decided we'd sell to rent. Settling for something not quite right would have meant a wasted opportunity and probably moving again, so we were prepared for a longer wait than we had.

Richiem1987

Rise in market prices are starting to slow down, but still rising, and may flatline in 2023. We are starting to see more lenders downvalue, so it will take a chunk of buyers out of the game. 

When fixed rate deals come to the end, especially if interest rates keep rising, reposessions will rise, and we will start to see more properties appear on the market. That will result in a slight drop, which will push some owners into negative equity, reducing the chances of a re-mortgage, which will then trigger further reposessions, more properties on the market and less able to affort higher rates. Yes, cash buyers will exist, but less demand and more properties on the market will have an effect. 

So to see any real effect, interest rates will have to keep rising, and reach 6-7% by 2025 to cause a proper crash. 

If anyone can hold off say on home improvements or a new car, they could use the free'd up cash to overpay on their mortgage to soften the blow when its time to re-mortgage. 

propertyhunter

I think EAs inadvertently tell you about the market when they email you asking if you want to see properties. This is what has been happening to me - and one is an off market listing and the other is currently under offer but the vendor is willing to accept an even lower price for someone without a chain as their current buyer is struggling to sell. How the tables have turned. 

TonyTeacake

jonnydeppiwish! said:

Combenew said:

Our circumstances are we sold our house sstc for 18% over asking about 5 weeks ago. The highest offer was 10k over the others and we accepted. The buyer is ready to sign and no mortgage needed.

We've just withdrawn our offer on a house that needed too much work for us to cope with,  so we are looking again. Nothing is coming up in the area we want to live which is 100 miles away from where we live currently. Our buyer will wait for a while longer but not forever.

We're thinking of selling and going into rented but then we may risk being left behind if prices keep climbing. Should we take it off the market and remarket when more houses become available but risk losing out on houses?

Help please - I could do with some perspective.

Take the money and rent in new area - you’ll benefit then from when you do buy as you’ll be a lot more knowledgeable about the areas you want to live in

I would agree with this, at least if you are renting you can take your time looking for a property and get to know the area properly.

Generally, I can't see house prices going up much more as the stats for April were 0.3% gains, looking at the previous month this is quite a difference. I mentioned this months ago on here that inflation is going to really bite and now we are starting to see this. I don't want to sound doom & gloom but the economy and the job markets are starting to suffer which I predicted,  things are going to get a lot worse before it they better.

At least you won't be fighting with lots of bidders and I'm sure you will see some big reductions in the next year or 2.

aoleks

tell that to this guy, he needs some reassurance that he'll be able to snap a house for peanuts...

FTB Overasking Offers Rejected — MoneySavingExpert Forum

TonyTeacake

aoleks said:

tell that to this guy, he needs some reassurance that he'll be able to snap a house for peanuts...

FTB Overasking Offers Rejected — MoneySavingExpert Forum

Well maybe not for peanuts but yes you will still see multiple bidders on some houses for now but bear in  mind this is not happening in every location. Like I say when the economy grinds to a halt and we are already seeing the signs I'm certain house prices will go into reversal. If you are active like myself and I talk to many businesses, the outlook looks really bad for the economy.

nicknameless

aoleks said:

tell that to this guy, he needs some reassurance that he'll be able to snap a house for peanuts...

FTB Overasking Offers Rejected — MoneySavingExpert Forum

 Lol.  Still the same exactly where we are / were looking.  We have now had an offer accepted on a property we first offered on in March which fell through.  The day before I viewed a 'doer upper' that needed I would guess about £30-£40k spending on it and was just not worth it.  That went SSTC the day after.  Still hardly any stock on the market in our area.  tbh I care not what happens to prices now - just praying this purchase gets to completion.

propertyhunter

nicknameless said:

aoleks said:

tell that to this guy, he needs some reassurance that he'll be able to snap a house for peanuts...

FTB Overasking Offers Rejected — MoneySavingExpert Forum

 Lol.  Still the same exactly where we are / were looking.  We have now had an offer accepted on a property we first offered on in March which fell through.  The day before I viewed a 'doer upper' that needed I would guess about £30-£40k spending on it and was just not worth it.  That went SSTC the day after.  Still hardly any stock on the market in our area.  tbh I care not what happens to prices now - just praying this purchase gets to completion.

This was me. I just wanted the damn house. 

nicknameless

propertyhunter said:

nicknameless said:

aoleks said:

tell that to this guy, he needs some reassurance that he'll be able to snap a house for peanuts...

FTB Overasking Offers Rejected — MoneySavingExpert Forum

 Lol.  Still the same exactly where we are / were looking.  We have now had an offer accepted on a property we first offered on in March which fell through.  The day before I viewed a 'doer upper' that needed I would guess about £30-£40k spending on it and was just not worth it.  That went SSTC the day after.  Still hardly any stock on the market in our area.  tbh I care not what happens to prices now - just praying this purchase gets to completion.

This was me. I just wanted the damn house. 

Quite.  I actually think the house we're hopefully buying is a relative 'bargain' compared to some of the tripe we've viewed and which appears to have sold for around the same ballpark.  Is it a bargain compared to two years ago - no.  Can we afford it - yes.  Are we overstretching - no.  Could we spend a lot more - yes.  Should we wait till hypothetically prices fall over a period of who knows when and how long - I don't think so.