To think current home sellers are living in a fantasy world?

[CanStopWillStop]

We are looking for a new home (out of necessity unfortunately!) so I am now deeply buried in Rightmove.

The most significant pattern I'm noticing is that dozens of sellers, who according to Land Registry bought their properties in 2019/2020, are listing their homes at £100-200k more than they paid two years ago.

Considering the current dire outlook for mortgages &cost of living etc, AIBU to think that this is absolutely ludicrous money they are chasing?

I understand some people may have remortgaged or are looking to upgrade but a £100,000 mark up on a 3-bed bungalow you've lived in for a couple of years is mind-blowing to me. What's happening here? Greed? Desperation? Do they really think people can actually get mortgages on overvalued properties? AIBU?

You do realise that the BofE had to guarantee the bond market?
You do realise that the IMF is concerned about the UK's level of borrowing?
You realise that we're a little fucked?

Or maybe I'm just hysterical.

My buyer pulled out because the interest rate went up and he couldn't afford the mortgage anymore. Then my seller pulled out for the same reason, he couldn't afford his onward purchase. So our chain collapsed within two weeks of Liz Truss taking over.

But I'm hysterical?

THIS IS THE REALITY.

www.ft.com/content/69af8f3f-30d3-497a-8afb-77739f9258b3

In January 2021, the British government introduced a new immigration route for the city’s British National (Overseas) (BNO) status holders, giving them and their family members the opportunity to live, work and study in the UK. There were 140,500 applications for the BNO visa up to the end of June, according to the Home Office, which expects 258,000-322,400 Hong Kongers to move to the UK in the next five years.

“As soon as the UK announced a new visa would be available to BNO Hong Kongers, we came here without a second thought,” says Mo, who worked as a marketing manager in Hong Kong and came to Britain in August 2020. She is clear on what her motivations were.
........

Nevertheless, most plan to purchase a home. Last year, one in 20 buyers of homes built by Redrow, one of Britain’s largest housebuilders, were from Hong Kong, and the strength of the Hong Kong dollar (it is pegged to the US dollar) and the high property prices over there give them significant spending power.

Even after recent dips in home prices, the city has one of the most expensive housing markets in the world, with the average property costing HK$15,000-$20,000 (£1,730-£2,300) per sq ft, according to estate agency Knight Frank.

Mo and her family swapped a small, two-bedroom Hong Kong flat, which sold for about £600,000, for a newly built detached house with four bedrooms in Crewe, Cheshire, for which they paid roughly £260,000.

Oh that’s so sweet and kind of you to come and warn people with no vested interest whatsoever of your own, cute 🥰

Buying at peak, at the utter extent of your borrowing capabilities, in this climate, would put you into insane territory.

Exactly, the UK economy looks poised to be the first domino to fall, so to speak.
Interest rates have risen massively, household bills have risen significantly due to high inflation, we are very early in what is very likely to be a massive recession, which will cause people to lose their jobs, the banks have or will be much more cautious about lending. There is only one way in which house prices can go, particularly after the 'mini budget' caused a massive sell off on the gilt market.
Yet, despite all this, there are still people talking about 'demand' and 'supply' in relation to how many new homes are being built. I'm totally bemused.

Zoopla says my house is £90,000 more than what I paid 2 years ago (about 20%) I think £60,000 is more realistic given current sales/listings. Not bad for a new build.

It's like what more can you say?

Look - Sell, buy. No skin off my nose.

The government will not warn you. Mainstream media will not warn you. Why? Because it spooks the markets and precipitates the event you're warning about.

It's frustrating.

And in 2 years time it will be worth about 20% less than what you paid for it by my calcs.

Just consider it your 'forever home' for now. 😆

And in 2 years time it will be worth about 20% less than what you paid for it by my calcs.

You could make a lot of money with that level of insight.

@aboutanidiot I have been saying the same thing on here for months and the situation has got progressively worse during that time but so many people still seem wedded to the erroneous idea the property values only ever go up ad infinitum and still seem to gloat over how much their house has increased in value.
Things are about to come falling down and not just the housing market.

There won't be much joy in saying "I told you so" either. It will affect all of us.

Maybe I have 😎

Absolutely, I'm not gloating about it all.

@aboutanidiot Kwasi is that you

Just call me Idiot. 😎

I don't know how to explain it in terms that people understand.

I actually feel how frustrated Sunak must have felt during those leadership debates.

People do not want to hear bad news! They don't want doom and gloom. Then they get hit with both barrels from a shotgun called Doom & Gloom.

Fucking hell.

@aboutanidiot what do you think I don't understand?

We have a war in Eastern Europe (with Russia mildly threatening going nuclear - more about that later).
We have an energy crisis.
We have inflation (worldwide) which indicates we're heading towards decline and then a long recession.
We are an island with no affiliation with the EU.
We have unstable economy.
We have an unstable 'leader'.
We have an overpriced property market
We have had the BofE guaranteeing the bond market for two weeks
We've had the pound crashing (at one point it was worth as much as the Russian ruble and on a parity with the dollar).
We have an utterly incompetent government
We have the IMF giving us polite warnings.

We have almost maxed out our borrowing capabilities

I mean, tell me, explain to me, which of the above inspires confidence?
One reason why anyone with an ounce of sense, one reason, why all of the above seems to be escaping you?

Until we reform the process of house buying in England, there will always be unrealistic expectations. Estate agents should be regulated in a much greater way than they are now.

I've no idea. Haven't read your posts.

My parents bought a home May 2021 and zoopla suggests it’s increased by 75k - there is so little available on the market that houses can be priced high due to demand. I’m always surprised by those priced say top of a 4 bed home price bracket for the area but it needs full renovation. We have lots of “new build” style homes that are actually 15-20 years old being sold with original kitchen and bathrooms. But people seem to be paying it.