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Original poster

House Prices 2020 - would you buy?

25 replies

Whitepriv · 05/07/2020 08:13

Would you buy a house right now? The house we are buying has fallen through, which may be no bad thing.

Would you sell a house right now? Should we sell anyway and rent, given the likelihood of a bad recession and the fact that our buyer is still keen at full asking price.

OP posts:
AltheaVestr1t · 05/07/2020 08:25

I'm in the middle of doing just that! We've been looking for a long time and finally found the dream house, so now we are all systems go. The market it very buoyant where I live so fingers crossed we will be ok. For what it's worth, we bought our first home just before the financial crash in 2008 and in the end it was no issue, we just sat it out!

YinuCeatleAyru · 05/07/2020 08:28

if:

  • you currently only own one house, that you live in and would need to sell it to buy a new one
  • your jobs are reasonably secure even in a recession
  • you would be able to afford the mortgage repayments even if interest rates were up 2-4% higher when your initial deal runs out
  • you don't anticipate moving again in the next 8 years or so

... then there is no reason not to move now. house prices are largely irrelevant in the above circumstances - you have an asset to the value of one house. if house prices drop then the asset you own decreases in value by about the same amount as the house you are buying. sane goes for when the prices are rising.

if you don't tick all the boxes above then do be more cautious.

LakieLady · 05/07/2020 08:29

I wouldn't if I was an FTB or trading up significantly, because I think prices are going to fall and I'd be able to get more for my money later on.

If I was buying because I wanted to be in a different area, and the gap between the house I was selling and the one I was buying wasn't massive, I probably would.

billysboy · 05/07/2020 08:29

with a looming recession ?? er no !

Once this starts to bite next year house prices will have dropped

KeepingPlain · 05/07/2020 08:31

Depends on how long you want to stay in the new house.

If you are planning on staying at least 5-10 years, buy it. The economy should be getting back on track by then.

If its a project and you want to sell within a year or so, dear god no. You'll lose a ton of money, likely at least. Its not a risk I'd want to take. Some areas will be more solid and not be damaged as much, but is it a risk you want to take? Are you happy losing a lot of money and financially stable to do so? That's information only you know.

derta · 05/07/2020 08:33

I'm with @YinuCeatleAyru

birdwatching · 05/07/2020 08:33

I probably still would if you have a seller. The house prices might come down but noone know how much.

If you need a place to live, I would see the house first and all as a home where you will stay many years as opposed to a short term investment.

Phthalo · 05/07/2020 08:34

Yeah if you're actually going to live there for a good amount of time then I'd just get on with it rather than trying to play any games/wait for things to fall etc. We are moving in 2 weeks, but luckily we sold and bought (offers, we're exchanging tomorrow!) a week before lockdown so super lucky with the timing admittedly.

DeeplyMovingExperience · 05/07/2020 08:34

We are in the process of selling and buying. Rising and falling markets don't matter if you're moving home because it's swings and roundabouts. Property investors might take a different approach, but for most of us normal folks who own one home and live in it, it's not really going to make any difference.

I'd say it's a good time for first time buyers definitely. The rest of us are just muddling along and getting on with it as best we can!

Zenithbear · 05/07/2020 08:38

Yes I would. I have bought in other times when so called experts predicted falls that never happened. Be sensible, do the maths, if you let worry and fear stop you from your plans you will never fulfil them.
Personally I would never sell and rent.

TheBlessedCheesemaker · 05/07/2020 08:39

I think it depends a lot on where you live and your own ability to move. Interest in areas around London has gone through the roof and prices will follow because people have woken up to new world where people will WFH 2/3 days a week; suddenly people have realised that a 2 bed terrace in Clapham equals a 5 bed detached somewhere leafy - a long commute just a couple of times a week opens up a lot of options. Saying that, people will need to find someone to buy their Clapham house, which won’t be so easy...

OddBoots · 05/07/2020 08:40

My late father's house had the buyer fall through because the buyer didn't have enough deposit for the new LTV mortgages but the day it went back on the market there were 3 offers at asking price so we have gone with the one that can complete fastest (the agents suggested going back for higher offers but that doesn't feel right). I thought the market would be dead but I guess I was wrong.

We intend to move in about 18 months when our youngest has left school, a move that has been on the cards for this time for years, we shall see what things are like then.

derta · 05/07/2020 08:48

@TheBlessedCheesemaker I don't think it's as simple as that. I would not want a 2 bed flat with no garden but would chose a 3 bed Clapham terrace over a 5 bed in outer zones. Even though wfh for us is likely the new norm we have excellent schools & open spaces on our doorstep plus a high street full of independents that has been excellent during lockdown & a real community spirit. Some of my friends in outer zones have bigger zones but no real high street or a very small one & have had to drive & queue at big supermarkets for the basics.

Sandsnake · 05/07/2020 09:14

We’re buying and selling at the moment. Although we’ve lowered our sights in terms of the property we’re buying. Before Covid we were planning on going towards the top of our budget with a ‘forever home’ but we’re not really comfortable doing that now and have opted for something that will meet our immediate needs instead (more room!). We have got the house we’re buying at probably less than it would have gone for pre-Covid, and have recently accepted a similar offer on ours - fair but on the lower side of things. Just hoping it all goes through now! Good luck to all trying to move at the moment.

AltheaVestr1t · 05/07/2020 09:17

We are going top budget for the forever home, but yes we can afford the mortgage if it rises and we won't be going anywhere, possible ever again!

TimeWastingButFun · 05/07/2020 09:20

I would buy but I wouldn't sell at the moment.

LellyMcKelly · 05/07/2020 09:25

It depends where you are. We’re in the south east in a catchment area for good schools. A dilapidated 3 bedroom semi that will need gutting (think central heating, rewiring, new windows, etc...the works) sold for the full asking price of almost half a million in 4 days. There appears to have been a real surge here.

VenusClapTrap · 05/07/2020 09:42

The market is going nuts in our village, mostly with buyers moving out of London. The ‘under offer’ signs are going up just days after houses come on the market.

We are in the process of buying the bungalow next door for df, and I’m terrified someone will come along and gazump us.

bettsbattenburg · 05/07/2020 09:47

I'd buy a house right now as I'd rather be in my own house than renting in uncertain times.

derta · 05/07/2020 09:48

Maybe I will move then if everyone is leaving London. I might be able to afford a 5 bed in zone 2! Can't leave as DH & I born & raised & want to stay close to family.

Charleyhorses · 05/07/2020 10:08

You need to sit down and do some proper sums. How much is it going to cost in rent? Moving, storage? Vs cost of mortgage etc.

SunflowerOwl · 05/07/2020 10:19

We are hoping to upsize this year. Having our house valued this week and as long as its not dropped to significantly less than what we paid for it we will probably put it on the market and start looking to buy our forever home. Not really worried about what prices do after that cause we don't plan to move again!

The only thing that worries me is that a lot of banks aren't doing mortgages for more than 80% LTV anymore. Our house is a classic FTB house (two bed terrace) and it's hard enough for FTBers to save up a 10% deposit let alone 20%. I think that could defo have an impact on house prices.

DarklyDreamingDexter · 05/07/2020 10:28

No, personally I wouldn’t, although of course it depends very much on personal circumstances. If someone had to move for work reasons or was getting divorced and needed to sell then those are good reasons. My DP wants to trade up to a bigger place and I’ve said no way should we even consider it till next next year and we can see what the market is doing then. I do think there’s a risk prices will drop as many people sadly will face repossession if they’ve lost jobs or livelihoods. I’ve been through a recession before and suffered negative equity (where the value of the property drops below the price you paid for it). Don’t want to go there again.

sst1234 · 05/07/2020 10:53

Where in the country are you? What is the value of your current house? What is the value of the house you are buying? What is your job or what deco the do you work in? What is your income ton mortgage ratio now and what will it be with the new house? Without this information, how long is a piece of string.

HappyDinosaur · 05/07/2020 10:56

Definitely, but I would buy somewhere I could see myself staying for at least 5 years.

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