housing market 2020-2021 = WTF???
Discussion
We will imminently be putting our house up for sale and have managed to reserve a new build off plan. The sales director was relatively relaxed and said despite them usually requiring you to sell your property within 6 weeks for SSTC that they were “flexible”, by which I read that as “don’t worry, you’ll shift it quickly”.
We’ve been in this house since 2011 so I’m unsure what the valuations will be. It’s a fairly standard modern townhouse (read terrace) with average garden and 3/4 bedrooms. Located just outside Leeds so we’ll see what the interest is.
We’ve been in this house since 2011 so I’m unsure what the valuations will be. It’s a fairly standard modern townhouse (read terrace) with average garden and 3/4 bedrooms. Located just outside Leeds so we’ll see what the interest is.
The next 6 months will be very telling.
SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
OP, we logged in to purplebricks the night before Boris first big lockdown announcement, with our fingers hovering over the 'list it' button. We didn't.
Roll forward and we put it up 2weeks ago and sold in 3days for what we wanted, to what look like good buyers.
Havnt found anywhere to move to yet, but at least the agents might let us go see them now!
Plan b is renting next door....
The cat will be wft??
Roll forward and we put it up 2weeks ago and sold in 3days for what we wanted, to what look like good buyers.
Havnt found anywhere to move to yet, but at least the agents might let us go see them now!
Plan b is renting next door....
The cat will be wft??
ExPat2B said:
It is global, its going to go up, and its due to boom for the next 2 years, this is just the start. Sitting tight with a deposit is the worst thing to do, inflation is eating your cash and the market is moving up.
When has the mass consensus ever been correct in such things?Everyone ran head first into the 2007 highs with FOMO and prices would go up forever and look what happened.
Right now everyone is expecting inflation, which is causing the inflation you’re seeing. Think about that for a second.
The money for this is debt. It’s temporary. The bill from UK Gov will be due!
Taxes and potential interest rate rises will kill off any chance of inflation.
Unless people are spending that new magic money.
Were in the same boat.
Started looking but discovered you couldn't get anywhere unless you were 'proceedable' i.e had nothing to sell or had a sale already agreed on your current place. Most sellers wouldn't even entertain offers if you weren't.
Within 2 hours of our place hitting rightmove we had 10 viewings lined up and it sold for over asking to the first viewers. We could have got more I'm sure but the buyers were in rented accommodation and were happy to wait for us to find somewhere so were perfect.
That was several months ago and we can't find anywhere to buy either although we have a fairly narrow area where we are looking.
We lost our on one property to a cash buyer. Everything else is either at utterly ridiculous money for places that need completely gutting and having £100K+ thrown at them to get them anywhere near being modern and attractive or anything that's decent goes straight away.
Were not prepared to rent as its dead money and we could still be looking for the right place in 2 years time at this rate. Besides our current house is absolutely fine and we aren't exactly slumming it.
Come to the conclusion that we've missed the boat so while still looking doubt we will find anything. Our buyers are also getting very jittery so expect them to walk away very shortly.
And on the subject of sudden price increases my sister is buying a new build on a small development. Its a large townhouse that was on at £925K. There were 8 of them. 4 of them (including my sisters) were reserved and exchanged contracts at that price. The developer then pulled the remaining 4 from the market for several months then re listed them at £1.25M. All now sold.
Started looking but discovered you couldn't get anywhere unless you were 'proceedable' i.e had nothing to sell or had a sale already agreed on your current place. Most sellers wouldn't even entertain offers if you weren't.
Within 2 hours of our place hitting rightmove we had 10 viewings lined up and it sold for over asking to the first viewers. We could have got more I'm sure but the buyers were in rented accommodation and were happy to wait for us to find somewhere so were perfect.
That was several months ago and we can't find anywhere to buy either although we have a fairly narrow area where we are looking.
We lost our on one property to a cash buyer. Everything else is either at utterly ridiculous money for places that need completely gutting and having £100K+ thrown at them to get them anywhere near being modern and attractive or anything that's decent goes straight away.
Were not prepared to rent as its dead money and we could still be looking for the right place in 2 years time at this rate. Besides our current house is absolutely fine and we aren't exactly slumming it.
Come to the conclusion that we've missed the boat so while still looking doubt we will find anything. Our buyers are also getting very jittery so expect them to walk away very shortly.
And on the subject of sudden price increases my sister is buying a new build on a small development. Its a large townhouse that was on at £925K. There were 8 of them. 4 of them (including my sisters) were reserved and exchanged contracts at that price. The developer then pulled the remaining 4 from the market for several months then re listed them at £1.25M. All now sold.
Edited by Davey S2 on Thursday 24th June 09:12
I'm looking for a retirement bungalow with garden & garage in my local area - also a cash buyer, as recently sold inherited property.
Lovely bungalow I was interested in had a tenant in situ, so I wouldn't offer until it was vacant - sold with tenant.
1st bungalow I offered on went to a bidding war, which I wasn't prepared to do.
2nd bungalow which I thought I'd pay over asking sold within 24 hours of listing and before my viewing appointment.
I'll keep looking, but there aren't many properties for sale, and lots of potential buyers.
Lovely bungalow I was interested in had a tenant in situ, so I wouldn't offer until it was vacant - sold with tenant.
1st bungalow I offered on went to a bidding war, which I wasn't prepared to do.
2nd bungalow which I thought I'd pay over asking sold within 24 hours of listing and before my viewing appointment.
I'll keep looking, but there aren't many properties for sale, and lots of potential buyers.
red_slr said:
IMHO house prices have been quite flat from maybe 2015 to 2020. Maybe it was due an adjustment. Either way we are in a cycle now that means stock levels are low and there is no easy way for the cycle to be broken - I think it will just take time to naturally burn itself out - I think we will see prices settle next year but in certain areas might continue to creep up. Then maybe a slight down turn in 2023. Then 2024 small growth and back to a "new normal". Just my gut feeling though.
In our immediate area of West Cheshire prices surged 2000 to 2007 then dipped and it's only the Covid bubble that finally got them back to 2007 levels - late FIL lived in a village with a lot of the same 3 bed link detached houses. His was sold for £130K in 2000, he paid £260K in 2006 (they nudged £300K at the peak) and we sold it as soon as things opened up in May 2020 for £300K (with several keen buyers). The people who bought it were downsizing into the area and had been in rental for a year and were getting a bit desperate (but that didn't motivate them to over-offer) so the shortage of property isn't a just Covid / stamp duty thing.
Same style of house, but a bit tarted up, was recently listed at £395K - it didn't sell as instantly as most, but is now Under Offer.
We're looking for ourselves in a similar price bracket (say around £500K) as the OP but our search area is pretty tight - semi-rural West Cheshire. We haven't seen anything we want to go for and anything reasonable sells instantly. Things seem to start slowing down around £850K but a house at a million (a valuation I laughed at) in our village just sold quickly.
We've got planning permission for a big extension on our current place but I'm dreading what that's going to cost now.
sjc said:
The next 6 months will be very telling.
SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
Personally I think inflation is your enemy here, not your friend, if you are expecting prices to fall.SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
Sure properties that haven't sold immediately (which tend to be the ones that aren't well presented) are being reduced but there's still big FOMO.
The main issue is that interest rates are low, very low, and won't be increased significantly any time soon. The government won't risk seeing large numbers of people, leveraged up to maximum, find themselves unable to afford their mortgages and/or in negative equity as a result of falling house prices.
With significant interest rate increases off the table as a control mechanism, I think we're in for a reasonable amount of inflation and in inflationary markets hard assets become attractive. A bit of inflation also helps when it comes to paying down historic debt (of which the country now has quite a bit more!).
I had cash sat in the bank getting eroded by inflation, I don't think that I'd be hanging around too long.
People who can WFH for the foreseeable want more room, people who will never be able to WFH (manufacturing etc) seeing the price of their out of town house rocket and move to somewhere closer to town (and cheaper) to cut the commute.
It'll all balance out somehow but who knows when....
It'll all balance out somehow but who knows when....
Fentalogue chic said:
People who can WFH for the foreseeable want more room, people who will never be able to WFH (manufacturing etc) seeing the price of their out of town house rocket and move to somewhere closer to town (and cheaper) to cut the commute.
It'll all balance out somehow but who knows when....
UK economy is 80% services, though not sure how that breaks down.It'll all balance out somehow but who knows when....
At some point I'm going to have adjust my expectations of what x amount money is going to buy me.
I'm too young to remember 2007, what was bidding like then? If there are 10 bidders on every property, including renters, can this really be FOMO?
aparna said:
I'm too young to remember 2007, what was bidding like then? If there are 10 bidders on every property, including renters, can this really be FOMO?
I think the difference between 06/07 and 20/21 is there was stock in 06/07. Or around here anyway.The situation today - to me anyway - seems much worse. In that there is no stock, prices are going up faster than chains can keep up with.
Its a sellers market. Its also a FTB market. I suspect a lot of renters have taken the chance to move and buy. They are agile buyers.
People in chains are having a hard time, esp if someone drops out.
In 06/07 the bubble was driven by lenders giving out loans which they normally would not have entertained. 110% mortgages were possible.
Now most buyers have large deposits. Its a very different situation.
I think the end of the SDLT break will not do anything as people have not been spending on holidays and entertainment. I think this whole thing just shows how much money people splash around.
Been mental for me, had one sale fall through and the prices rose so much it priced my out of the area I live, so I've had to look elsewhere. Managed to get a place for what I consider a decent price and not in a bad area, meant to be completing next month. It's been a tough and long 14 months, but hopefully after 4 more weeks it'll all be sorted and I'll finally have somewhere to call my own.
In regards to the general market, I saw houses sell STC, then get put back on for 10% more after they fell through, the prices were just insane and they've only carried on going. I think they'll stagnate slightly but I don't expect them to fall by more than a percent or two at most.
In regards to the general market, I saw houses sell STC, then get put back on for 10% more after they fell through, the prices were just insane and they've only carried on going. I think they'll stagnate slightly but I don't expect them to fall by more than a percent or two at most.
LooneyTunes said:
sjc said:
The next 6 months will be very telling.
SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
Personally I think inflation is your enemy here, not your friend, if you are expecting prices to fall.SD holiday ending, furlough ending,inflation climbing possible winter Covid restrictions again.It’s inevitable to me that the market will correct itself, just no one knows by how much. I’ve sold and completed Monday, in rented now and in no rush. Paying 50k + over the true value of a house to save 12.5k in stamp duty is madness. I’m already seeing price reductions on properties in my area that haven’t being on the market long.
Sure properties that haven't sold immediately (which tend to be the ones that aren't well presented) are being reduced but there's still big FOMO.
The main issue is that interest rates are low, very low, and won't be increased significantly any time soon. The government won't risk seeing large numbers of people, leveraged up to maximum, find themselves unable to afford their mortgages and/or in negative equity as a result of falling house prices.
With significant interest rate increases off the table as a control mechanism, I think we're in for a reasonable amount of inflation and in inflationary markets hard assets become attractive. A bit of inflation also helps when it comes to paying down historic debt (of which the country now has quite a bit more!).
I had cash sat in the bank getting eroded by inflation, I don't think that I'd be hanging around too long.
Easiest way of reducing deficit is through inflation. It's why crazy house prices work, over time the inflation eats away at your borrowing.
Interest rates won't go up, it would cause a recession.
Davey S2 said:
No such holiday in Wales and the market is just as mental.
Because suddenly that green and luscious land is open to many people. Previously you had to look from afar/go there on holiday, now you can live there and work remote...and because Wales is cheap as chips more generally than the UK it stands to reason it will fly up. Most of the houses in Wales wouldn't pay SD anyway given the average detached is around 250k.OP, this has just come on the market in the village I grew up in and my parents and sister still live in.
Easily walking distance to the village centre, in catchment oof good primary school and the high school is decent as well but there are private alternatives not too far away.
https://www.rightmove.co.uk/properties/109364741#/
I've a feeling interest will be huge for this as a house to extend.
Or this is all ready to move in with lots of space.
https://www.rightmove.co.uk/properties/107170007#/
Easily walking distance to the village centre, in catchment oof good primary school and the high school is decent as well but there are private alternatives not too far away.
https://www.rightmove.co.uk/properties/109364741#/
I've a feeling interest will be huge for this as a house to extend.
Or this is all ready to move in with lots of space.
https://www.rightmove.co.uk/properties/107170007#/
shalmaneser said:
SD holiday ending
September furlough ending
Inflation increasing
If you're in rented right now bunker down for a year and I reckon you'll be sitting pretty.
https://www.thisismoney.co.uk/money/markets/article-3675608/This-country-long-painful-history-booms-busts-housing-market-Britain-brink-house-price-crash.htmlSeptember furlough ending
Inflation increasing
If you're in rented right now bunker down for a year and I reckon you'll be sitting pretty.
5 years later.....
If right now we had a 18% crash (bigger than the biggest house price crash in history), prices would still be more than they were just 4 years ago.
I think thats what we will do unless a perfect forever home comes up.
As you say the next few months theres alot happening which might give a hint of what might happen.
Inflation news comes up on BBC website everyday but its all hidden in the background.
Posted 5 minutes ago - https://www.bbc.co.uk/news/business-57596298
The comments from this yeterday are interesting - https://www.bbc.co.uk/news/business-57578230
Only peoples opinions so who knows.....
As you say the next few months theres alot happening which might give a hint of what might happen.
Inflation news comes up on BBC website everyday but its all hidden in the background.
Posted 5 minutes ago - https://www.bbc.co.uk/news/business-57596298
The comments from this yeterday are interesting - https://www.bbc.co.uk/news/business-57578230
Only peoples opinions so who knows.....
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