Has the market crashed?

77588p

Our house went on the market a week ago today for £365,000. I live on a desireable estate which was only built 5 years ago. There are about 7 different house types on the estate and ours is one of the larger houses. 

So far we have had 0 viewings or interest. My friend lives in the smallest house type on our estate and in June this year put her house on the market for £330,000 and had lots of viewings. She eventually removed it and cancelled most of the viewings as the house she wanted to buy had sold.

I always agree with the principle that if a house isnt getting viewings then its over priced but it doesnt feel over priced compared to recent sales in the summer.

My question is... has the housing market collapsed due to rising rates and stories of reducing house prices?

Or actually could we just be over priced?

I know a week isnt a long time but to have zero viewings has taken the wind out of our sales. I have emailed estate agent today asking for their thoughts. My view would be to either reduce now to £349,950 or to pull the house till spring next year when hopefully things have settled.

Sarah1Mitty2

Saying the market has "collapsed" because you have not had a viewing in a WEEK is probably stretching things a bit to be honest, lending has definitely changed though and people are more cautious now, and banks are as well (see the down-valuation threads that are popping up)

theartfullodger

The UK seems to be much more badly affected than most of Europe.  Wonder why....

My agent tells almost no viewings, market dead.

Sunlit uplands eh?

movilogo

Don't compare the market with summer. Earlier this year houses were going over asking prices. Now after interest rate rises, buyers' affordability is down by £50-100k. So keep that in mind.

GiantTCR

The market has not collapsed but we're almost there.

With interest rates so high compared to months ago and with everyone pretty much saying the housing market is about to collapse (but this time it really is about to collapse), nobody in their sane mind would want to buy a house now, unless they desperately need one.

mark_cycling00

Attached is some detail about what might happen to house prices:
https://research.berenberg.com/report/5AC1F012E7DC8517B40D622382AF7259

in summary down 10% by early 2023 but then start to rise again. 

1616six

The Tories have happened. 

Look at rates, a lot of people who were considering moving have now seen interest rates and decided to hold off. 

It’s also now out of ‘moving season’ so will naturally quieten down until the new year. 

Also bear in mind that 365k isn’t usual FTB territory so you’ll be in a more restricted market where you’re relying on chain buyers, those will also be trying to sell houses to people who can’t afford mortgage rates. 

You’re being way too hasty after a week though regardless!

Martisha

In my county each day I see about 15 houses being reduced on Rightmove.
Houses that had been added during the summer with offers over £400k are now being advertised as £375k guide price…

Sarah1Mitty2

https://www.independent.co.uk/news/business/mortgages-repossessions-landlord-evictions-rent-b2222207.html

Articles like this really make people pause and consider their options I think,  New builds are going to drop in price because help to buy (or help to borrow as I have heard it referred to) has been cancelled.

RM_2013

The market is very different now.  I’ve been watching the local market since around April time where it was crazy busy.  We sold in jul and offered in aug and was still busy then.  What I’ve noticed is a lot of houses being on for longer than before and lots of reductions and larger and more expensive homes seem to be moving even more slowly.
different areas may have different demand but certainly local to me the market is very different.

that said the house will appeal to the right buyer.  There are still people that can and want to move but lots of folk being a lot more cautious and waiting things out now 

RM_2013

@Sarah1Mitty2 locally to us there were 3 planned new developments, one barratt and 2 TW.  The first ti launch hasn’t had much building work started.  They are advertising plots - a couple of smaller properties have been reserved but they’ve reduced a 4 bed one by £20k and are still offering deposit contributions and upgraded kitchen.  The other 2 developments were due to release around now but still no details on their website.  Historically new builds around here used to get snapped up off plan