House prices What is going on?

[flopseyR72]

I am looking to buy a house. Have been waiting since before lockdown. I’m in rented so not selling.the estate agent has just told me the marker where I am Greater London east ( golden triangle Loughton Chigwell to Epping and brentwood) is going crazy. I just don’t understand why people don’t seem to care about a imminent economy recession coming. Does anyone think I should just buy now or wait. I’ve been waiting a long time and wasting money on rent.

I’ve got two kids so I thought a guest room for my mum would b good as will be single parent

In that case I would be looking to buy now. During the financial crisis I remember not seeing larger properties for sale in London very often and so when they were they created almost mini bubbles.

You have £500k??? Half a million pounds?! Jeeeeeeez buy now.

I know it sounds mad but was planning to relocate in the country for ages and so buying got delayed also splitting up with ex so didn’t want to buy with him in it.

we have just sold for full asking price where we are and everything on the market is going within days. I honestly think the risks of a complete crash are overblown. certain industries have not even blinked. if people are financially secure, its a great time to buy. it is going to be a very uneven recession I think. certain areas and sectors are completely unaffected, others have been decimated.

Unless you are expecting the market to raise sharply and planning to sell again next year for a profit, personally I would buy. Even if there's a crash it won't make much difference in the long term anyway.

Economic downturn is hardly going to encourage banks to be generous in their mortgage offer and available properties will dry up... If the pound keep going down too, you'll end up being in competition with overseas investors too.

People who are wishing for a property market crash thinking they will suddenly be offered a choice of dirt-cheap properties are completely deluded.

With 500k, you can also compromise and pretty much buy a decent property a bit further cash.

The market WAS crazy but here in North London/Herts borders, it's like the balloon is being popped. Houses that were snapped up for premium prices are now coming back on the market (valuation shock? Mortgage reality?) at the same price as before. But they're not being snapped up as they previously were.

So take your time and wait for the right house to come up.

No sector of the economy will be untouched if we go into recession surely it will spread throughout the economy eventually

People are buying because they have saved some money over lockdown, they have realised how important their home is to them and going forward may continue with a changed lifestyle . It has certainly made us query the prices we used to pay for meals out often. I'm in the SE and people are keen to buy .

I think it’s the eye watering figures of houses here I was looking at a house but the seller wants 70k more than they bought two years ( they have put in a new kitchen but it’s not to my taste anyway)

I grew up in Epping, and my parents still live there. Prices have never seriously dropped, throughout any of the downturns they’ve seen over the 45 years since they bought their first house there.

I wouldn’t wait.

I live just within a London postal district and house prices seem to be stable here (I am vaguely looking though not in a position to move at the moment). Maybe look elsewhere, not too far away obviously.

You haven't been wasting money in rent. Everyone has to pay for where they live and, whilst renting, at least you don't have responsibility for repairs and general maintenance. Most people rent for a while before buying, it takes longer now to get on the housing ladder, especially in the London area but you'll get there eventually.

London certainly didnt suffer the same way as many other parts of the country in the last recession. I'm not sure I'd bank on it suffering this time.

Houses are worth what people are willing to pay. If your budget isnt getting what you want, you could consider other areas?

You are completely and utterly mad to be sitting paying rent with 500k in savings. You ought to have bought an investment property alone years ago regardless of DP.

In any case I smell a bit of bragging here. If you earn enough to have saved five hundred thousand pounds without being given a chunk from parents/inheritance etc you know full well you are endlessly better off than most and can easily afford something in that market, timing regardless.

I was looking for advise on house market because I get anxious about it

I was expecting a crash but it hasn't happened. It could do over the next 12 months it's anybody's guess.

@NoIDontWatchLoveIsland don’t let that chip on your shoulder get too heavy now. 🙄

@flopseyR72 based on your needs, I’d definitely try buying now. Since you’re seeking a 4 bedroom with a garden in London, that almost feels “top of the market” like a previous poster mentioned and there may be less inventory, therefore more competitive.

If you’d like, you can try posting links to some of the houses you’ve been eyeing and we can help assess if they’re a good range to jump on or not. Sometimes it takes an outside perspective to help shake us out out our dogged determination/insistence that we’re right. :)

Buy when the right house comes along. If you have a large deposit and job security, get the best house you can afford in terms of schools, location, transport, green spaces, genteel neighbourhood feel. The "sought" after houses and places in and around London never really go down except on paper as there are plenty of other rich people waiting to snap up those houses, of which there are few. They will always attract a premium. You really cannot second guess the top or bottom of the market. Much more important to find the right place for you and your children and make it home in the long run. Life is too short if you are financially stable to worry about a few thousand here and there.

Buy now. Over the long term houses only go up in value. You will only lose out if you want to sell in the nearish future.

For example:

you buy tomorrow at 700k

market crashes next month and house is only worth 600k

5 years time market has risen again and house worth 750k now

Unless you want (need) to sell in that 5 year period the house value is not an issue.

Plus what you will save in stamp duty and what you will save in rent, it really is a no brainer!

I think a lot of people who were stuck in flats over lockdown are now looking to move somewhere with a garden. Therefore these properties are in demand.
I think a lot of people who were living at home with parents over lockdown are now looking to move out. Therefore flats will be in demand.
I bet a lot of people who are settled in decent properties will be staying put because of the uncertainty in the job market and won’t risk moving up the ladder.
Therefore demand will outstrip supply and prices will rise.

OK I realised you might not want "genteel neighbourhood feel" and might want "arty, alternative", or "bit more diverse and edgy" -whatever it is, think about which one will make you the happiest in the long run and the feel can really differ from street to street in and around London. I see it in my quite suburban area too - there are the large private roads, the "nice" genteel streets, the busier roads, the semi detached streets, the more diverse streets. In fact, during lockdown I would go for a walk at 8pm on a Thursday and the difference in clapping for the NHS was fascinating.

@flopseyR72

I was looking for advise on house market because I get anxious about it

I’d be bloody anxious if I’d got half a million in the bank at next to no interest and was wasting money on rent. That’s the worst of all possible worlds.

Buy now for the stamp duty saving alone.

Have you posted about this before? It rings a bell - work for the NHS, huge wedge to spend on housing... I'm sure I saw this a few weeks back on here? Or maybe I'm going mad.

Was looking to see if anyone new what was happening in the market really. I follow the news but it’s all over the place and seems laden with vested interests