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Original poster

Is the property market really cooling?

28 replies

VivaLeBeaver · 19/06/2014 17:49

And what does it mean? That the price rises will just come to a halt or that there will be a crash? I know interest rates are meant to rise next year but at the minute locally prices still seem to be going up, though not as bonkers as London.

I've had an offer accepted and am waiting for it all to go through. Am getting cold feet and worrying now I've bought at the top of the market.

OP posts:

voiceofgodot · 19/06/2014 18:41

I've just today listed my property on RM, and have been talking to agents (in SE London) regularly for the past year. They are unanimous in their belief that the market has totally cooled down, due to the MMR regulations along with regular newsflashes about impending interest rate rises.

They have said they do not think that prices will actually drop, just that price increases have reached a limit. In our area, prices have increased by about 50% in 2-3 years - it has been utterly unsustainable.

Original poster

VivaLeBeaver · 19/06/2014 18:50

Well its good news that they don't think there'll be a drop.

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voiceofgodot · 19/06/2014 18:51

They were talking about London, I don't know about elsewhere.

ResponsibleAdult · 19/06/2014 18:58

Market is currently cooling down in London because the first time buyers at the bottom of the chain can't get enough deposit together for the loan to value needed for their mortgages. The mortgage rules have changed, student debt is now included as any other type of debt, therefore first time buyers look like a high risk lend, this reduces turnover of property.

Add the changes brought in about taxes and buy to let, can't remember the details, but know it's not good, I believe we are cooling down.

Estate agent speak for this is known as corrections in the market apparently (spoke to friendly estate agent and that was her phrase), what that means is asking prices will not be reached and offers will be accepted.

Just wish bloody Daily Mail could keep up with economic developments and stop telling everyone that the markets are booming in London and the SE and we may a property bubble when they are perpetuating it.

Original poster

VivaLeBeaver · 19/06/2014 19:13

I think national prices tend to follow London just not to the same extreme. Might be wrong. But Lndon seems the most overpriced so if that's not going to drop hopefully it won't elsewhere.

I know you can never know for sure.

OP posts:

Bowlersarm · 19/06/2014 19:15

Market is definitely cooling. Whether that is a blip or a pause who knows. Personally I don't think there will be a crash (unless there is some kind of unforeseen Armageddon scenario)

sh77 · 19/06/2014 19:51

Yes, two agents in Central London have said the market is cooling. Prices aren't falling but levelling. I haven't seen a single estate agent begging letter in about 6 weeks. Properties in my area are sitting on the market for longer.

mizu · 19/06/2014 20:10

It is good news that they don't think there will be a drop ?

Oh please, who is it good news for?

House prices need to drop I'm afraid for any average family to be able to afford to buy.

hyperspacebug · 19/06/2014 20:13

It does seem London has reached some kind of more steady equilibrium. I'm still following rightmove and even nice properties do seem to hang around for longer than one weekend. But they still seem to be sold nonetheless. Just taking longer time in our area.

Original poster

VivaLeBeaver · 19/06/2014 21:00

Ok, sorry. For me personally having just bought a house of course I'll be pleased if prices don't crash. Of course I'm sorry for those not yet on the property market but I don't want to be in negative equity.

Ideally all prices would have stayed at 1996 levels.

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Iseenyou · 19/06/2014 21:19

This reply has been deleted

Message withdrawn at poster's request.

pontypridd · 19/06/2014 21:27

Asking prices in my area of London are definitely dropping - significantly.

There are things that aren't shifting that are having 5 - 20% taken off them. And new properties are coming on at definite lower prices.

Iseenyou · 19/06/2014 21:52

This reply has been deleted

Message withdrawn at poster's request.

pontypridd · 19/06/2014 22:02

No - not where my name is.

East London - where prices have risen ridiculously. So I suppose there might be more of a distance for them to fall.

itsnothingoriginal · 19/06/2014 22:10

Interestingly, we've had no huge rises here at all. Property is still around 10-15% lower than 2007 prices but it's been pretty stagnant since then really (South West).

Probably depends on the area and rate of HPI as to whether there will be larger falls. Agree there is no way there won't be an impact to prices with the mortgage market so tight at the moment. If IR go up then double whammy!!

Even though we own our house now (would rather rent personally but renting with a family proved to be far too unstable for us) I would like to see falls in prices as the property haves and have nots are just making society far too unequal.

GatheringRequirements · 20/06/2014 10:02

In Newbury park the rates are still high

voiceofgodot · 20/06/2014 10:11

ponty - interesting, I'm in your southern counterpart probably - Peckham. Prices have risen 50% in two years. I'm noticing that the decent properties are still selling, although taking a bit longer than the 'under offer overnight' phenomenon of a few months back. The chancers (trying to sell at top whack despite having major drawbacks about them) are on the market for months. I've just put ours on at a high valuation, in the hope that somebody somewhere will want it because it's on the best road in the area, and overlooking the park. Really hope I don't need to take a hit on it because I'm downsizing due to divorce and need every penny!

LizLemon · 20/06/2014 11:13

Interesting ponty - I'm in Peckham/ED and have noticed that some stuff is being reduced if it was over-excitedly priced, but it usually has some drawbacks. Decent stuff is going, but not overnight. We've priced at 'offers over', which I'm not sure about, but for comparable stuff on the market it's at the lower end, so hopefully the tactic will work.

TBH if all prices cool down it makes it better for us as buyers, so I'm glad if it means I won't have to get into bunfights over half decent properties.

godot - am v close to you. Sorry to hear for the reason for your sale - fingers crossed you get every last penny.

voiceofgodot · 20/06/2014 11:40

Thanks Liz (although I'm happy to be getting divorced.. :) )

What's your experience been so far? I have to agree that I was dreading joining the long queues of buyers looking around each property - I've been to see one house so far and the agents held an 'open house'... trouble was only three people turned up. I think we'll see an end to the open house set up v soon, and thankfully my agent doesn't offer them.

LizLemon · 20/06/2014 19:46

We saw a house we loved - four offers including ours. We also saw a wreck - 11 offers including ours. I suspect that because of our budget that will still be the case on everything we go for. If we had an extra 100k we'd be able to pick.

Our agent said they were moving away from open houses, but decided to try one because we're an inbetweeny kind of property. It was a bit of a flop in terms of numbers tbh but we had two couples who really loved it, tho haven't offered. I think the new mortgage rules are putting the breaks on just underneath us and there isn't the kind of panic there was six months ago. Which is good really, because it was a bit mental.

LadyStark · 20/06/2014 20:23

I can see how it might be cooling but I think certain parts of market are always going to be in demand - houses in good school catchments etc.

Until significantly more houses are built there is going to be more demand in London/Commuter belt areas that there is supply - whether that's cash buyers doing buy to let or people buying homes.

Iseenyou · 20/06/2014 21:14

This reply has been deleted

Message withdrawn at poster's request.

MarshaBrady · 20/06/2014 21:17

Open houses probably work better in an upward market. Yes to the feeling of ah I'm going to miss out. Especially with other people milling about.

I think it's cooling and that buying mania will go.

Iseenyou · 20/06/2014 21:27

This reply has been deleted

Message withdrawn at poster's request.

MaryWestmacott · 20/06/2014 21:38

Viva - don't worry if house prices fall, think about how long you want to live in that house and what use you'll get from it. If you needed a car with 7 seats, you were borrowing money to buy it, you would need to use it for 10 years or so, and you'd have paid for hte loan within 5 years, would you not buy it if you were told when you sold it you'd get less than you paid? Or would you think "I need to use a car for the next 10 years, and I'm better off than renting a car for that time."

The value of your house only really matters if you want to sell your house or you can't afford the mortgage. If you're confident you can afford your mortgage, and you'll live in that house for more than 15 years, then if they crash in the short term, why would it matter to you? In the same way if your house goes up in value when you're not in a position to sell or want to release equity, you might feel richer, but it doesn't really matter to you.

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