How have asking prices for property changed in your area since summer? 24 November 2022 at 12:49PM edited 25 November 2022 at 12:33PM in Mortgages & endowments 12 replies 826 views

PK_London

I have noticed on Rightmove the asking prices for flats in my part of outer London have dropped by over 10% since the summer. How have asking prices in your area changed?

I was lucky enough to secure a 2.29% rate for my flat this summer, at the peak of the market. However new flats in the same development has now had their prices drop by 10%.

When I use the right move calculator on two flats both with a 10% deposit over a 25yr term, the monthly payments are as follows
£290K @2.29% = £1144
£260K @6.0% = £1508

Over a 5yr fixed period with the cheaper flat you would pay £21,840 more - which added to the purchase price - £260K, minus the £3k saved on the deposit is £278,840 - so still over £11k cheaper than the higher priced flat at the lower rate. I would say those who missed the super cheap rates this summer might still be better off buying at 6% if they can get 10% off the asking price. You paying a higher rate but you're also borrowing a lot less. 

kingstreet

You might get a better response to this on HBR&S.

propertyhunter

I've seen some houses drop 20% from £1.2m to £1m. They have now started to sell at the £1m amount though (perhaps a bit lower).

My house price would need to fall 14% for mortgage costs to be equivalent to the current best 5-year fixed rate. I'm fixed until 2027 at 1.44% (thank god). 

london21

Depends on the area. Not much change with DA7 Bexleyheath area. 

Linton

No idea whether house prices in my area have changed, Rightmove shows no sales for about 6 weeks.  Before then houses were under offer within a few days.

mi-key

Seem to have increased a bit in the area of south wales I am in. They do seem to be taking a bit longer to sell though

PK_London

Linton said:

No idea whether house prices in my area have changed, Rightmove shows no sales for about 6 weeks.  Before then houses were under offer within a few days.

Rightmove only shows the asking prices. They have dropped considerably since the summer and they are still not selling. It might just be an outer London thing but asking prices have dropped 10% and they're still not selling. Prices may drop further but I think despites rates being high, it might be a good time to buy if you can knock 10% or more off the summer asking prices

silvercar

I've asked the MSE forum team to move this thread to the housing board.

Aberdeenangarse

I posted this a few days ago…

Certainly been a weird market this last couple of years. Partner was going to put her house on the market after identical one sold for £475k last year. Didn’t get around to marketing it to June this year. Staggered when EA valued it at £565k and even more staggered when we had a cash offer within 2 hours of £580k. Completed end of September. Another identical house went on the market last month for £550k and has just been reduced to offers over £500k I guess we just got lucky!

mi-key

Aberdeenangarse A lot comes down to timing and luck I think. If she put hers on at the exact time someone was looking for a house like that. I have noticed a lot with older people downsizing they will often find a house they like and offer the asking price or above just so they don't miss out on it, and as they have sold their old house for more, then they aren't too bothered about the price.

550K is pretty much the same as your partners in terms of price, maybe there just isnt someone looking for that house at the moment and the seller doesn't want to wait around 

PK_London

Aberdeenangarse said:

I posted this a few days ago…

Certainly been a weird market this last couple of years. Partner was going to put her house on the market after identical one sold for £475k last year. Didn’t get around to marketing it to June this year. Staggered when EA valued it at £565k and even more staggered when we had a cash offer within 2 hours of £580k. Completed end of September. Another identical house went on the market last month for £550k and has just been reduced to offers over £500k I guess we just got lucky!

I think we have a two tier housing market. We've had 170,000 people from Ukraine and 76,000 from Hong Kong and it's likely a lot of those will be cash buyers happy to pay the asking price. I have a friend who is looking to buy with a mortgage and as a matter of principle will be offering 10% below the asking price given how affordability has changed with the higher mortgage rates.