Concerns about buying at the 'peak' of the market - should we pull out?

Windofchange

You could easily argue there will never be a good time to buy. What have we had recently - Brexit, C19, lockdowns, war - my point being always something that will come along and make people go ahhh uhhhmmm. You’re not wrong to consider finances of course, but given this isn’t stretching you then no way I’d be pulling out. If you were after a quick house flip then probably not the best time. You’re not though. You’re after a home and you’ll be there for years so as others have said, over time it’ll all balance out and I bet in ten years time this bit of turbulence now will all seem so insignificant. 

sidneyvic

Look on rightmove for you area and houses listed in last 24 hours. You find a lot of reductions, more so than new listings. Most will be substantial reductions and many will be for "vacant" properties. The crash has already happened but these figures will not filter through for 3 months as it takes time for houses to complete. The "vacant" properties are investors in the know bailing as they know what is coming. There are going to be more distressed sales especially from the new beed of buy to let investors who didnt realise one day they may have to pay 6% 8nterest...
And yes you are totally correct in what you said. I bought 10 years ago, went from small 3 bed semi to a much bigger 4 bed with double garage for an extra 34k ..... Now the difference in price between the two is over 100k.

gettingtheresometime

sidneyvic said:

Look on rightmove for you area and houses listed in last 24 hours. You find a lot of reductions, more so than new listings. Most will be substantial reductions and many will be for "vacant" properties. The crash has already happened but these figures will not filter through for 3 months as it takes time for houses to complete. The "vacant" properties are investors in the know bailing as they know what is coming. There are going to be more distressed sales especially from the new beed of buy to let investors who didnt realise one day they may have to pay 6% 8nterest...
And yes you are totally correct in what you said. I bought 10 years ago, went from small 3 bed semi to a much bigger 4 bed with double garage for an extra 34k ..... Now the difference in price between the two is over 100k.

Whilst I'd agree with you with regards to vacant properties being reduced I can only refer to my personal experience.

Vacant house was valued at £175k, advertised at £200k sstc at £175k. Buyer thinks they've got a bargain ....

Again for personal reasons, if the sale fell through now, I'd still be laughing (in fact there's a perverse part of me hopes it will).

Sistergold

The logistics of buying a house after you have started a family(in the flat) are different. With children affordability changes. Well just saying I would carry on. If market crashes it will also crash for the flat like you said. Not buying for now is okay if you want to wait and see but you might want to reconsider about starting a family while still there. 

Sarah1Mitty2

sidneyvic said:

Look on rightmove for you area and houses listed in last 24 hours. You find a lot of reductions, more so than new listings. Most will be substantial reductions and many will be for "vacant" properties. The crash has already happened but these figures will not filter through for 3 months as it takes time for houses to complete. The "vacant" properties are investors in the know bailing as they know what is coming. There are going to be more distressed sales especially from the new beed of buy to let investors who didnt realise one day they may have to pay 6% 8nterest...
And yes you are totally correct in what you said. I bought 10 years ago, went from small 3 bed semi to a much bigger 4 bed with double garage for an extra 34k ..... Now the difference in price between the two is over 100k.

The really smart sellers were out before the rates went up, the stamp duty holiday was great exit point for many.

[Deleted User]

sidneyvic said:

Look on rightmove for you area and houses listed in last 24 hours. You find a lot of reductions, more so than new listings. 

Interesting - Actually there are a lot of reductions in the past few weeks like you say but Im not sure what to make of it. I was recently surprised to see houses listed at 450 and 475, similar to mine which I am fairly sure is worth 360. I think there are supply and demand issues. Reductions have felt inevitable in relation to kite flying prices. But its a long way to go before the price reductions actually amount to bargain prices.

 

movilogo

It won't be bargain price (unless cash buyer) because interest rate going up as well. So, for same monthly payment you will be able to borrow less. When millions of buyers will be affected by this, the price reduction will be lot more.

Majority of people sell & buy at the same time. But every chain is underpinned by FTB or someone who is not selling. Since these people are feeling the pinch of interest rate rise, the house of cards must fall to accommodate this. 

15-20% price reduction on the horizon. Some houses are already slashing prices by 10%. 

Sarah1Mitty2

[Deleted User] said:

sidneyvic said:

Look on rightmove for you area and houses listed in last 24 hours. You find a lot of reductions, more so than new listings. 

Interesting - Actually there are a lot of reductions in the past few weeks like you say but Im not sure what to make of it. I was recently surprised to see houses listed at 450 and 475, similar to mine which I am fairly sure is worth 360. I think there are supply and demand issues. Reductions have felt inevitable in relation to kite flying prices. But its a long way to go before the price reductions actually amount to bargain prices.

 

Of course it is, mortgage rates only started to really spike a couple of weeks ago, when people get used to mortgage rates at around 8% then you will get your bargains.

eidand

The market does not have a bottom or a top.

If you can find a property which matches your needs, is in the right area, you can afford it and the cost is close to other houses in the area then go ahead and buy. You can't time the market ...

GAMBITv5

The price of a house is only relevant when your intention is to sell / buy.

if you’re planning on living there for the long term then worry about the price when you are needing to sell. If you think you have offered what it was worth at the time you’ve offered it then go ahead I say