Has the market crashed?

housebuyer143

I wouldn't say it's collapsed. Just gone back to how it was pre covid. Never before, did houses get snapped up in days over asking price. A return to normality is probably welcome.

sheramber

A friend's house wet on the market last Thursday and offer accepted on the Saturday.

Sarah1Mitty2

RM_2013 said:

@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 

https://www.scottishconstructionnow.com/articles/taylor-wimpey-remains-confidents-despite-rising-cancellations-and-fewer-sales

I find the references to the "mini-budget" as some sort of ground zero annoying, this is a global shift in borrowing costs, certainly not all Truss`s fault!

Sarah1Mitty2

housebuyer143 said:

I wouldn't say it's collapsed. Just gone back to how it was pre covid. Never before, did houses get snapped up in days over asking price. A return to normality is probably welcome.

Interest rates pre -Covid were at historical lows, that was nothing like normal, we are nowhere near going back there.

Surrey_EA

77588p said:

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 wonder if there is anything that might have changed since the summer...?!? 

On a more serious note, the market has definitely softened, although not crashed, and sellers almost certainly need to have more realistic expectations today then they would have done 3 or 4 months ago. If you're going to do a reduction you may have to be bolder than £365k to £350k, but I don't know enough about your property or area to say for certain.

Heres_the_deal

housebuyer143 said:

I wouldn't say it's collapsed. Just gone back to how it was pre covid. Never before, did houses get snapped up in days over asking price. A return to normality is probably welcome.

I noticed your post and it made me think.

I was about to say in the area I was looking to buy, house prices have dropped like a brick being pulled towards earth with the gravity of Jupiter. But looking at it again, they have returned to pre-covid levels suggesting they had risen at an alarming rate in the past few years.

The property I purchased six months ago is now £5-10k lower today, the same as it was in 2019. Although not a accurate indication, I've looked through all the areas I viewed properties in since 2019, and many have indeed returned back to 2018 levels.

Exodi

77588p said:

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.
...

Or actually could we just be over priced?

A house is only worth what someone is willing to pay for it.

You recognise the situation is completely different to that of the summer, yet you continue to compare your selling price to that of properties in the summer.

A buyer looking to buy your house in the summer with a 25 year mortgage of £328,500 and a 10% deposit (=£365k) on a 3 year fixed deal with a £999 fee added to the balance, would be looking at an interest rate of 2.79% and a monthly repayment of £1,526.77.

A buyer looking to buy your house now with the same mortgage, would be looking at an interest rate of 5.99% and a monthly repayment of £2,120.95.

So on top of double-digit inflation, including eye-watering energy bills, the same buyer would now be required to spend an additional £594.18 a month, in interest.

This is why demand has dried up, and house prices will likely start to go down. It's up to you whether you reduce your price or decide not to sell - you said it best yourself, if a house isnt getting viewings then its (probably) over priced.

The upside to this is that house prices are somewhat relative to eachother. So if you were buying a new property, you could expect that that may be worth less than now also.

77588p

Thank you all for your comments and I agree with everything you have said.

Might look to drop the price to £340k and see what happens....

If we did drop the price and then decided to pull the house from the market, would there be a history of it being listed for 340k in case we wanted to try again next year?

Sarah1Mitty2

sheramber said:

A friend's house wet on the market last Thursday and offer accepted on the Saturday.

Sounds like a very hot market, what postcode was that?

Snookie12cat

77588p said:

Thank you all for your comments and I agree with everything you have said.

Might look to drop the price to £340k and see what happens....

If we did drop the price and then decided to pull the house from the market, would there be a history of it being listed for 340k in case we wanted to try again next year?

You need to wait 14 weeks between taking it down and relisting it or it shows the last price you asked for it (with either reduced next it... not sure what it says if you then increase it) and will not show up at the top of the page. After 14 weeks it will be listed as a new property.