To just be so upset about house prices

[spuddy56]

We started looking in December after scrimping and saving for years and its got more and more out of reach with every passing week since then. We've had two sales fall through due to downvaluations, so not only did we need the huge deposit we had saved up for years, we needed 10k on top of that which is impossible for us. We are paying rent and have no family help. We viewed a tiny house that we love and has been on the market since beginning of April with no offers but the seller won't budge on the price. Based on one year of sold prices in the area its about 40k too much, even taking into account the 10% rises over the last 12 months. Theres just no way a mortgage company would lend that much. Been to view another one and it's tiny, has had no offers and is worth a lot less but agents don't think they will go lower. We've had to adjust our expectations down and down despite being what we thought were healthy earners. How are first time buyers managing to buy right now without help?! I'm so so upset at not having somewhere to settle and call a permanent home.

Kay Neufeld, Head of Forecasting and Thought Leadership at Cebr, says the index continued its downward spiral in May.

"Looking for a silver lining, we note that at least the pace of falls has started to slow, with the 0.6-point contraction being the mildest since December 2021.

Importantly, households’ perceptions regarding their financial situation have started to improve this month, albeit from a low base. The announcement of the Chancellor’s £15 billion cost-of-living support package will have gone some way to alleviating the most pressing concerns.

Nevertheless, the fact that the four measures covering job security and home values have all fallen back suggests that the slowdown is starting to affect other sectors of the economy, with the housing market in particular looking set for a correction in the face of rising borrowing costs.”

www.theguardian.com/business/2022/jun/17/asia-markets-plunge-again-as-flurry-of-interest-rate-hikes-fuels-recession-fears?CMP=ShareiOSAppOther

Anything to add @Nothappyatwork?

It's totally ridiculous. There haven't been enough houses built since the 1970s, so demand has increased every year. The government don't ever want to do anything to reduce house prices because there would be uproar from all house owners. They have stopped building council houses which at least provided stable and cheap rental for those who needed it. I seem to remember reading that 90% of land in this country is owned by 1% of people so there would be plenty of space to go around if things weren't so unequal.

I'm afraid everything's against you and unless you have a rich bank of mum and dad there's not much that can be done apart from moving to a different part of the country or moving abroad. It's shitty.

Aww, bless you! it’s so hard learning a language as an adult, I know what you mean - I really wish I’d done lessons as a kid 😂 I would definitely recommend it though, I don’t know which country you’re looking at but for us for Finland you can find like 5 bedroom houses an 1hr out from Helsinki for £200,000 which i think is just mind blowing - I’d definitely consider it! Which country is your partner from?

https://www.theguardian.com/business/2022/jun/17/tesco-sales-fall-amid-unprecedented-increases-in-cost-of-living?CMP=ShareiOSAppp_Other

This is an interesting article. People are cutting back on a massive scale. My feel is that this will have a knock on effect in what people are willing to pay for houses. Along with the interest rate rises. Cheapest 5 year fix has gone from 2.4% to 3 % in the last few weeks. With at least another 0.5% expected in the next couple of months.

https://www.theguardian.com/business/2022/jun/16/asos-warns-on-profits-amid-significant-increase-in-customer-returns?CMP=ShareiOSAppp_Other

Clothing as well. Consumer behaviour has changed since March.

www.mumsnet.com/talk/amibeing_unreasonable/4571403-to-ask-when-interest-rates-will-likely-go-down

@Iamthewombat
@rainingsnoring

This thread may interest you.

First thing to go will be people making silly offers to "win" the house, totally pointless when the bank is just going to slap you down now anyway, and then chains will start to collapse, leading people to cut their prices or just take it off the market and stay put.

First thing to go will be people making silly offers to "win" the house, totally pointless when the bank is just going to slap you down now anyway, and then chains will start to collapse, leading people to cut their prices or just take it off the market and stay put.

Agreed. Might take time to see it. People are still making the high offers and going to the lender. It will be in the next month that those mortgages get declined and the buyers have to go back to the vendor with a lower offer. I'm expecting a volume of previously SSTC houses to return to the market around the end of July. Then it will spiral from there. What are your thoughts on timings?

Unfortunately we’ve always had to do bidding and winning houses in my city. It’s awful,

This will probably be us! No news on valuation yet but I'm fairly resigned to not buying!

@CharSiu what postcode is that?

In the whole city or just certain areas?

The whole city. It’s worse in the popular areas.

Sheffield has the highest number of houses sold over the asking price because of this shit.

I'm in Manchester. There are "hot " suburbs in the South and West It's not as bad in the North and East.

"House prices in Great Britain hit a record high in June but are likely to start falling during the next few months as five interest rate rises and a worsening cost of living crisis finally start to put the brakes on the property market’s record-breaking run, according to Rightmove.
The property website said asking prices hit a record for a fifth consecutive month in June, rising by 0.3% – or £1,113 – to reach £368,614. However, this was the smallest monthly increase since January, with the site saying: “The exceptional pace of the market is easing a little.”
Rightmove added: “After a very strong first half of the year, it is likely that the housing affordability crunch will have a greater impact on market behaviour in the months ahead, with further interest rate rises anticipated during that period.
“This, alongside more choice coming on to the market for buyers and the usual seasonal variations we would expect, means there are likely to be some month-on-month price falls during the second half of the year.”
As a result, the website is expecting that the annual rate of price growth will be slashed almost by half from its current 9.7% to about 5% by the end of this year".

@ArseInTheCoOpWindow

Was this the article you mentioned earlier?

https://www.theguardian.com/business/2022/jun/20/house-prices-in-great-britain-hit-record-high-but-falls-predicted-in-2022?CMP=ShareiOSAppp_Other

Yeah

That article doesnt make sense

it talks of price falls, but later clarifies that its referring to a slow down (a halving) of price growth

So rather than growth of nearly 10%, by the end of the year growth will have slowed to 5%

But that is still growth

I thought that about that article. Although depending on the rate of growth over specific months last year that could still mean a drop, but I think its just poorly written and basically no one knows. I can't see how they can't go down, but then I never envisaged them getting more crazy since 2019! Argh.

@doorbore it also depends on location. Which postcode r u buying? Some locations tend to stagnate or fall little compared to others

I haven't read all the replies but what you definitely should NOT do is buy a house that needs loads of work to be liveable (unless you are DIY experts). The price of building materials and labour has rocketed and it now works out more expensive to buy a fixer upper. There are plenty of stories about people stuck in houses that they can't afford to do up.

I wouldn't be holding out hopes for a crash either. It is supply that is the problem, not price. If there are 5 houses available and 10 people looking, then only the top 5 will be able to buy a house, regardless of how cheap or expensive the houses are. I expect that cash buyers would also be ready to pile in if there was any significant drop.

The only realistic option is to move to a cheaper area until you've built enough equity to have more choice. If you can't do that then you could perhaps look into shared ownership.

police warning for this thurs - kids upto menace

Are you using PropertyLog to spot reductions and price trends in areas?

You dont think the five that dont manage to overpay for a house will be homeless though do you, they must be living somewhere?