Is anyone moving now?

Author
Discussion

mattyprice4004

1,327 posts

175 months

Monday 31st October 2022
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Market around here seems to be stood still - at this rate I’ll be letting this house out when the time comes.
It seems to have gone from sale prices being 20% over asking to stagnation in no time at all!

edc

9,245 posts

252 months

Monday 31st October 2022
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johnnyBv8 said:
edc said:
johnnyBv8 said:
If I were a buyer at the moment with options I’d definitely be waiting to see what happens with mortgage rates etc. If someone needs to sell currently I’d expect it be hard work, but if someone doesn’t need to sell they’ll probably sit tight. It’s therefore really hard to know whether the current situation is indicative of a future sustained direction, or just a reflection of current uncertainty. Very few of us got it right in 2020!
Even if you got ahead of the curve in 2020 then you may be coming off your fixed term deal around now. I managed to sell and buy in July/August 2020 with completion in Dec and had I had a 2 year fix I'd be going from 1.58 to what we is out there now. I'm on a 3 year fix so hoping things calm down over the next year.
Similar to you - we sold at the end of 2020 when things were a bit slow, though didn’t buy again until August 2021 after a few months of demand being very high. We managed not to pay over the odds and also fixed for 5 years at 1.02%. I’m still a bit addicted to watching the market and things are definitely slower, but I think a lot of areas will just stagnate. The areas that have the biggest falls will probably be those that experienced ridiculous increases over the past couple of years. Hopefully the current mortgage rates are pricing uncertainty, and future increases will be more tempered.


Edited by johnnyBv8 on Monday 31st October 20:16
I've made an on paper 25-30% but in my area the optimistic asking price houses are being reduced or sticking for a bit but those which look more realistic in asking are still selling within 2-4 weeks. Things may start to fall apart a few more weeks or months in as the chains wobble.

MuscleSedan

1,557 posts

176 months

Monday 31st October 2022
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mattyprice4004 said:
Market around here seems to be stood still - at this rate I’ll be letting this house out when the time comes.
It seems to have gone from sale prices being 20% over asking to stagnation in no time at all!
The speed at which the market appears to be changing is surprising. I still had agents recently telling me about achieved prices being £20k - £30k over guide, 10% pa gains etc. They can't even get me any viewers right now !


ooid

4,142 posts

101 months

Monday 31st October 2022
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Not me, my colleague was about to move but he also can't! He made an offer on a period conversion flat in London (Quite central, WC), 1 bedroom around 40sqm. Apparently its gone over asking to a cash buyer. (There were 3 more offers). This is perhaps for the house prices thread, but I think "the location" still drives the narrative.

C70R

17,596 posts

105 months

Tuesday 1st November 2022
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ooid said:
Not me, my colleague was about to move but he also can't! He made an offer on a period conversion flat in London (Quite central, WC), 1 bedroom around 40sqm. Apparently its gone over asking to a cash buyer. (There were 3 more offers). This is perhaps for the house prices thread, but I think "the location" still drives the narrative.
You can't compare Central London with anywhere. It doesn't really follow macro market trends.

That_White_GT3

292 posts

172 months

Tuesday 1st November 2022
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We had an offer accepted last week on a probate house, we managed to get just shy of 10% off the asking price. My head said wait but this is a family/reno house that we plan to be in for years to come, it came up in the right area and we had sold our house with a plan to move out regardless (renting until a house came up). I have watched the market closely in the past few months whilst looking and there have been a lot of houses reduced, however sellers seem to be happy to sit and wait. After such a creep up in prices people view their properties as worth more than market value. I also get the feeling agents are trying to prop the market up as they know sales and comms are going to drop in the coming months/year(s) - they are also playing all sorts of games to try and get buyers to pay more, we walked away from one as the agent was beyond a joke.

Edited by That_White_GT3 on Tuesday 1st November 08:35

FrankAbagnale

1,702 posts

113 months

Tuesday 1st November 2022
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Offered on a house a week or so ago in cheltenham, 10% below asking. Sold for guide price.

Interestingly, there were only two bidders - tells me there isn't a lot of depth in demand. On another day, we may have got it!

BigBen

11,668 posts

231 months

Tuesday 1st November 2022
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Buyers of my mum's house dropped out this week for very flimsy reasons. She is in no hurry so can try again next year, it is a lovely period home close to a station so will sell quickly, perhaps for less money next year but the same will apply to wherever she ends up buying.

Rhyss

21 posts

26 months

Tuesday 1st November 2022
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FrankAbagnale said:
Offered on a house a week or so ago in cheltenham, 10% below asking. Sold for guide price.

Interestingly, there were only two bidders - tells me there isn't a lot of depth in demand. On another day, we may have got it!
On the contrary, the agents who i've spoke to in Cheltenham have said there are a fair amount of buyers but not enough *decent* supply. 10% also does seem steep for the Cheltenham bubble.

lizardbrain

2,079 posts

38 months

Tuesday 1st November 2022
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Yes seems toe anything decent or characterful is still flying off the shelves for pre budget money. But anything average is getting reduced by looks of things.

This suggests to me there is still pent up demand playing out for those with cash and low LTVs but whether this demand is sustainable with trouble down the chain is another question?

C70R

17,596 posts

105 months

Tuesday 1st November 2022
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Let's face it, all boats have risen with the tide of the last two years, many undeservedly so.

Watching people desperate to get on/up the ladder overpaying for absolutely bang-average property in the past couple of years has been eye-opening. These will be the people rueing their haste when their fixed rate period ends.

The only reason we bought at the peak (offer accepted in April/May) was that we were buying a complete unicorn. If we'd been looking at run-of-the-mill property I'd have sat on my wallet for a bit and tried to pick through the bones of a potential softening.

anonymous-user

55 months

Tuesday 1st November 2022
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johnnyBv8 said:
MuscleSedan said:
The one I've put on was valued at £300k - £315k in the summer. Different agent valued it 3 weeks ago at £290k - £300k with a view to it making the £290k. Now at £280k with zero viewers. Personally, I think it's going to be a bloodbath out there.
If I were a buyer at the moment with options I’d definitely be waiting to see what happens with mortgage rates etc. If someone needs to sell currently I’d expect it be hard work, but if someone doesn’t need to sell they’ll probably sit tight. It’s therefore really hard to know whether the current situation is indicative of a future sustained direction, or just a reflection of current uncertainty. Very few of us got it right in 2020!
My parents friends are looking to buy a property in the £1.5 million range and are cash buyers. They are in absolutely no hurry and are going to wait until Spring before they seriously start looking. I am betting they are going to get a good deal once they find somewhere they like.

I also think all of those areas outside of the cities where people moved to once Covid hit are going to fall the hardest. I have a BTL in Hampshire and the way the estimated value on Zoopla increased month on month over the last two years has been crazy. Wasn't surprised at all to see it drop nearly £10K this month, I think this is only the begining.

I think London will be a bit more robust as it is clear it has massively rebounded after the "Lets move out to the country and buy a puppy. We can work from home now, so lets never go to the office again". These people are now expected to be in the office more, which is a pain when you live hours away.

spikeyhead

17,416 posts

198 months

Tuesday 1st November 2022
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I'm remarkably happy that the two places we wanted to buy in the spring fell through and we've ended up renting for a year.

C70R

17,596 posts

105 months

Tuesday 1st November 2022
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Joey Deacon said:
I think London will be a bit more robust as it is clear it has massively rebounded after the "Lets move out to the country and buy a puppy. We can work from home now, so lets never go to the office again". These people are now expected to be in the office more, which is a pain when you live hours away.
It sounds logical, but I honestly haven't seen any data to back this up. As soon as you read into some of the 'analysis' published by right-leaning newspapers, there are holes galore.

C70R

17,596 posts

105 months

Tuesday 1st November 2022
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spikeyhead said:
I'm remarkably happy that the two places we wanted to buy in the spring fell through and we've ended up renting for a year.
Have you done all the maths on that?

If...
Decline in property value > Money lost on rent + Increased mortgage interest costs

Then you're laughing all the way to the bank.

I'd be surprised if that were the case somehow.

emicen

8,602 posts

219 months

Tuesday 1st November 2022
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Anecdotal as we’re not [currently] listing, but in our estate things are drying up. It’s a new build estate in the Scottish central belt, ~1,000 houses now built, ~1,500 still to go and things have been booming the last 2 years. Estate agents more often than not went straight to putting Sold boards up as houses were going from Rightmove listing to accepted offer in under 2 weeks. Prices were pretty mental considering we’re talking new build; early Feb-21 at £218k re-selling early May-22 at £285k, late Jun-21 original purchase at £225k selling in early Jul-22 at £285k; 25%ish in a single year.

In the last 2 months however, things have slowed markedly. I notice a lot of the stuff which changed to SSTC in June still kicking around waiting for mortgages etc to complete. 2 recent listings [early Sept] have now had reductions in their prices; offers over £300,000 down to offers over £289,995, offers over £270k now fixed price £275k. In both cases, sellers looking for a number starting with a 3 are probably realising that’s just not happening.

spikeyhead

17,416 posts

198 months

Tuesday 1st November 2022
quotequote all
C70R said:
spikeyhead said:
I'm remarkably happy that the two places we wanted to buy in the spring fell through and we've ended up renting for a year.
Have you done all the maths on that?

If...
Decline in property value > Money lost on rent + Increased mortgage interest costs

Then you're laughing all the way to the bank.

I'd be surprised if that were the case somehow.
Interest on what we sold our last place for almost pays the rent.

We'll have almost no mortgage on the place we buy.

so, little money lost on rent, negligible extra mortgage costs (if at all) and we're already seeing significant price falls.

fido

16,862 posts

256 months

Tuesday 1st November 2022
quotequote all
johnnyBv8 said:
If I were a buyer at the moment with options I’d definitely be waiting to see what happens with mortgage rates etc. If someone needs to sell currently I’d expect it be hard work, but if someone doesn’t need to sell they’ll probably sit tight. It’s therefore really hard to know whether the current situation is indicative of a future sustained direction, or just a reflection of current uncertainty. Very few of us got it right in 2020!
This is the problem - there is so little supply and choice. Once you factor in rental costs and the risk of missing the next upturn then you are not in a better position as a buyer. I ended up buying from a divorced couple and even they held out for a higher price. Actually I noticed alot more doer-up-ers on the market but with building costs changing by the week that probably puts off mortgaged buyers who want to fix their outlay.

C70R

17,596 posts

105 months

Tuesday 1st November 2022
quotequote all
spikeyhead said:
C70R said:
spikeyhead said:
I'm remarkably happy that the two places we wanted to buy in the spring fell through and we've ended up renting for a year.
Have you done all the maths on that?

If...
Decline in property value > Money lost on rent + Increased mortgage interest costs

Then you're laughing all the way to the bank.

I'd be surprised if that were the case somehow.
Interest on what we sold our last place for almost pays the rent.

We'll have almost no mortgage on the place we buy.

so, little money lost on rent, negligible extra mortgage costs (if at all) and we're already seeing significant price falls.
Ah, that's good. If you don't need a mortgage, then you're in pole position at the moment.

GreatGranny

9,171 posts

227 months

Tuesday 1st November 2022
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Think we are on the finishing straight with my Mother in Laws sale and purchase.

Having to push her Solicitor at every step and an issue with a missing Indemnity certificate has been sorted today.

Looking at exchange end of this week, completion 17th November.

Seller of the bungalow she is moving to has only just started her buying process but has always said she will move in with her sister to break the chain.

Contacted a local removal guy today who is free all that week and giving a quote Thursday.
He's well regarded locally and started as a man with a van type but has 4 large Luton type vans now so should be able to handle it.

Trying to get another quote just for peace of mind.