To think house prices are still rocketing

[Beafortea]

We've been looking to buy a bog standard 3 bedroom house since January. Open to something that needs updating. We're upsizing from a 2 bedroom flat.

There's not a lot on the market right now for obvious reasons, but in the few months we've been house hunting, 3 bed semis in the area have gone from typically being listed at around £460-500k (which was reasonably aftordable for us) to now going on the market at £600k+. Everything that comes up is now totally out of our budget. Even houses that are smaller and in poorer condition than cheaper houses we viewed earlier in the year. This seems crazy, but is it normal for prices to increase this quickly? I thought house prices were stagnating/falling?!

How many have come up? If it's a small area you're looking at, it can feel like it, but it's a very small sample size. I don't think there's much growth currently.

Where area are you in? In my part of London flats and larger houses have stagnated.
I read an article a few yrs ago during the lockdown housing boom that the classic 3 bed house would be the most in demand going forward. Families in flats needing more space and downsizers would be fighting for them. I also know a few people who historically would have bought a flat and then moved to a house just skip the flat stage. I would do similar these days as it often makes more sense.

@Pollipops1 Yep we've sold our London flat at a slight loss after living here for 8 years.

We're looking at a few areas in southern commuter belt. We did find a house we really liked back in February, but we lost out to some retired downsizers who were cash buyers. So yeah, what you say in your post makes sense.

My eyes bleed every time I go on rightmove.

Yes, some flats have stagnated since Brexit which is a pain for you. I also think the 600k mark is a competitive market. As high as it is, lots can afford it with a combo of salaries, equity, savings. Hopefully something comes up, it’s really tough.

We found our dream house so went on the market last week at a price I thought was unrealistic- we've had a bidding war. 5 days later the solicitors were all actioned today!

Seems a funny market here..

Where are you please?

You are looking at list price rather than sold price. I think buyers are negotiating harder, so perhaps sellers are trying counteract that with higher list prices.

Also, house prices are always very localised and flats haven't matched a house for price growth in a long time. I think if you are moving area then that's tricky

I imagine it’s largely area dependent. For example, a poster above says that in their part of London flats have stagnated: in mine, Land Registry sale information shows that they’ve consistently continued to increase year on year and flats are still selling higher than they did prior to both Covid and interest rate rises.

Central Essex, wasn't expecting it at all! Husband is very smug that his garage gym was mentioned by all viewings as the reason

There's no negotiating in my area. You pay the price it's listed at or you don't get the house. Sellers aren't interested in offers under. We've tried.

Feels like banks are increasing mortgage terms so all the prices will just bump up to accommodate the extra cash on the market.