Argh! There is just nothing on the market!

[IlanaK]

Our flat is under offer (third time - crossing fingers it goes through) for a good price and we just cannot find anything to move into. We thought we had a good place in mind and then the vendor decided to sell to a neighbour. I just cannot find anything to buy. Looks like we are going to have to move in with my mother (again!) which I really do not want to do.

[ABetaDad]

Can you rent?

[IlanaK]

Unfortunately not. We have no mortgage at the moment. If we rent (and rental prices in central London are astromomical), we would be eating into our capital.

[goldenpeach]

I sympathise. We cannot find a property to rent nor to buy and we do have some money. I am looking in Cambridge where the competition is rife and there is little on offer.

[IlanaK]

We are in central London (zone 1) and looking to move to zone 2. So many people are renting and looking to buy that the competition is high here too.

[goldenpeach]

I know London well. I lived there for many years. Try other areas, perhaps zone three, there are some nice places not too far.

[IlanaK]

We have tried everywhere! But we don't actually want to move to zone 3 for lots of reasons.

[1dilemma]

I feel your pain Ilana really I do!

We're currently on ths sidelines again waiting waiting waiting........

Saw crazy article in ES this week about the salary needed to buy in London! Somethings gotta give!

[fruitspooksbatsintheeaves]

would you like my house? We're on the market (half an hour from cambridge thou)

[1dilemma]

fruits if it has more than 4 bedrooms, a large grass garden, big kitchen, and is less than 30 mins from my work for an affordable price then yes please.

I know it doesn't meet the work thing though!

[fruitspooksbatsintheeaves]

oh shame about the work distance as it fits all the other criteria!

[goldenpeach]

IlanaK, among other places, I used to live in Walthamstow where prices have crashed so bargains to be had...

They have less crime than places like Hackney and Islington, which are pretty expensive.

Have you considered Wanstead? It's nice there!

My DP used to leave in posh part of Bromley and the prices are down there too.

In Cambridge prices have not come down and some houses are selling for prices that make London look cheap.

[1dilemma]

to fruits

wish you hadn't said that

I was comforting myself with the fact that your house was a tiny 2 bed terrace for half a million

[TheHappyCat]

Because people who don't need to sell aren't, because buyers are still expecting a bargain.
Sitting tight is the best thing to do for now. Soon things will pick up and the key is to be ready to move when supply increases but before the prices start to rocket!

[1dilemma]

surely prices will drop when supply rockets? (usual law of supply and demand!)

[goldenpeach]

Of course buyers expect a bargain. Most people's income got hit by the credit crunch. My DP used to earn good money and now earns less than half what he used to. Recession is a reality not a frame of mind.

[standingonmyhands]

IlanaK - could you not cope with renting in zone 3 for a short while? Is it because of proximity to schools?

As you know, there are lots of people interested in a small number of houses at the moment and if you're chain free will have a much better chance of securing a house that you do like.

[1dilemma]

Ilana HE's so school's aren't an issue!!

[standingonmyhands]

Ah, I see. Why is zone 3 an issue then?

[IlanaK]

Zone 3 is an issue to us as my husband works in zone 1, my mother lives in zone 1 and we spend most of our time in zone 1. Travel costs and time with three children are too much when you head out to zone 3.

Lots of lovely places mentioned on here, but none of them on a zone 2 tube line!

We are not expecting a bargain - that is not the issue. I am even prepared to buy way above our budget. There is just nothing out there that matches our criteria. It is either right house wrong location, or right location wrong house.

[goldenpeach]

I think the key is to have reliable transport, the reason why we chose walthamstow was that it had bus station, br station and underground so tube strikes were not an issue. Also plenty of night buses. Very quick link to Oxford Circus. I used to work freelance as far as Waterloo and at the BBC's White City and the commute was fast. It all depends where your parents are.

I lived in zone 1 many years ago but it was hostels and sharing a mini flat with another girl, couldn't afford more!

There are areas of zone 2 which are a nightmare to commute from, such as Hackney, so it's not a question of zones, more like what transport links you have.

For instance, the northern line is crappy!

[IlanaK]

Thanks everyone. Dh and I have decided today to go for a maisonette that we had been planning to buy previously when previous buyer of our place pulled out. We had decided not to buy it when we got a new buyer as the new buyer is paying significantly more than the last one so we were looking to spend more. But in the end, we have decided that being mortgage free would be a good thing and we would be happy in it.

[TheHappyCat]

1dilemma: what I mean is:
Prices drop - nobody wants to sell for pittance. Nobody puts house on market, including us.
Prices rise - everyone wants a piece of the action - more on the market. Buyers get fearful that prices will then rise too quickly, so try to buy quickly, things sell more.
That is my experience of the housing market!

[goldenpeach]

This is not how it works, more houses on the market, more competition, lower prices achieved. Take Cambridge this spring/summer: few properties for sale that are affordable, houses selling at or over asking price. So many people, attracted by the high asking and sold prices have marketed their properties, which means sold prices will drop as people were prepared to pay over the odds only because of short supply. I have never seen so many houses coming onto the market in October (in my opinion the worst time to sell), so I guess they are hoping to get out at the high of the market before a feared collapse or they reckon interest rates will go up. Not sure their strategy will work as there are less buyers around and those who are still looking are not going to pay over the odds, especially if the survey disagrees with the valuation. Some 'sold' houses have started to come back to the market with reduced asking prices.

[TheHappyCat]

Different area have different market forces at play. My view and my experience are based on prime central London - which is where I think the OP is looking, and the bracket ours and friends' houses are in - whereas you go up or down a value band and the market is totally different. Haven't a clue about Cambridge, so couldn't possibly comment!