Are prices shooting up where you are?

[Focusanddetermination]

Just that really. I'm in a small Midlands town, have a high amount of activity and prices shooting up in the past few weeks even.

I thought people would be more hesitant with a looming recession, but it's almost the opposite.

Yes, 30-50 block viewings and multiple bids on property, going to best and final within a week of being put on the market from my experience. It's a nightmare trying to find something and then having to guess a price however many thousand above guide price you're willing to bid.

Yes, my place (west midland) is going crazy at the moment.After the stamp duty cut announced, lots houses are gone through STC within several days. It immediately turn a downturn market into a booming market.

I did ask this in another thread, someone replied it's because furlough scheme/mortgage holiday is not ending, the real effect on house market won't show up until November..Just don't know how true is that..

It seems to me people are going crazy at the moment, probably the damage to economy is not so bad compared with 2008 recession.

My house went on the market last week. I have 40+ viewings booked in. I have had 6 so far and already have offers over asking price. It's crackers!

As a FTB the general advice I got was don't buy, because you don't have to and there will likely be a price drop within a year. That sounded sensible. Now I'm wondering whether I'll be priced out of anywhere I like by then.

As a first time buyer you should be taking advantage of no stamp!

it depends what your chances are of needing to move again within the next 5 years. it's true that you could be plunged into negative equity if there is a serious crash but crashes still recover sooner or later and meanwhile if you can just tick along paying the mortgage and don't have to sell up to relocate, there's usually no harm done. if your employment feels precarious I wouldn't though, and certainly aim for at least 15% deposit, more if you can manage, and don't stretch yourself to the limit of what the most generous lenders will offer you.

My employment is stable for now, professional services at a University. Sector wise who knows but so far where I am looks OK.

I can do about £50-60k deposit and looking at houses up to £250k but mostly below to £230k. A year ago in this area that got you a 4 bed, now it gets you a 3 bed.

I just let one go, 3 bed semi, mahoosive garden/land, now its been snapped up.

My rented property is stable on the flipside, so if prices drop in 12 months I could be in a good position to buy by waiting. It's a risky bet looking at everyone rushing out to buy now.

The market is roaring around me, in the south east. You can tell when the market is going crazy because houses which have stagnated with sale boards outside for months if not years all read ‘Sold’. Anything coming on goes quickly. It’s a good time to sell a property with slight issues, on a busy road, etc.

It has to slow down even come to a stop surely, but when?

No stamp duty + good mortgage rates at the moment are really tempting people. It’s a fast moving market here at the moment too (yorkshire)

yes houses are moving in my area. My dad commented that a house on his street had a sold sign up in a week! The stamp duty decicion has definitely helped people and property move

As a FTB the general advice I got was don't buy, because you don't have to and there will likely be a price drop within a year

Who gave you this advice? It was always a huge gamble if you took it.

Think it was obvious estate agents were going to raise prices with the drop in stamp duty
Plus any house around £250K which would’ve been under SD is now soaring to take advantage of none

House Ms rarely lose value

A 4 bed 50’s semi is on the market for £600k here

It went on the market on Thursday last week and already has two people offering and trying to buy it

I’m amazed.

Yes it is booming here. I was surprised to see our house sell very quickly. We achieved asking price which is about 25k more I thought it would fetch. Now we are looking and all the good potential houses have gone. It is a waiting game now ready to pounce once we find a house we like as they seem not to be hanging around for long.

Yes the market here was pretty stagnant all of last year, but since the stamp duty holiday was announced houses are suddenly shifting!

I’m amazed

I don’t understand this. My self and others have been on many threads trying to tell people this was the risk, that there was pent up demand, and then that the stamp duty cut would stimulate the market.

There are always folks on here shouting don’t buy and predicting a crash, likely because they personally need Or would like one, but ultimately the value of property always eventually increases, and waiting is always a huge gamble and has meant many people never get their foot on the ladder.

I put my London flat on the market 2 weeks ago and had a lot of interest, several viewings already done and more booked. One buyer has made an offer.

I was really surprised by the level of interest. I think the stamp duty cut will help keep things moving.

Yes, but there is a massive new build estate being built in the area at the moment. I think a lot of people are buying into existing cheaper houses in the area thinking that it is an up and coming area. It's really not.

Who told you prices would drop? Did they say the same about Brexit, by any chance (wait until afterwards, prices will drop) and are still saying the same thing about COVID?

At the moment, there is a reduction in stamp duty and low interest rates. That is going to be very appealing for some, as you've found out.

I don't know anyone IRL who thinks property prices will drop the way some MNetters do.

@ChicCroissant to be fair, i only managed to buy my flat in London because of Brexit price drops. It dropped from £450k in 2015 to £392k in 2019. Not huge though- 13% drop. And that was very London centric.

Now there is a flat in my development listed for £450k. It may go down again after the stamp duty holiday ends though. But the thing is, it wouldn't really help people struggling to get on the ladder. It might help some people who were already eligible to buy a house save some money, but not something that is life altering either

Yep, also in West Mids, similar house on the next street to our’s sold within a week this month for 100k more than we paid for our’s last year, only difference is they have a larger garden and drive way. There’s been quite a few houses nearby that have sold quickly for more than we expected during the Covid crisis. Our house has apparently increased in value by 15% since we bought it last year.

There are always folks on here shouting don’t buy and predicting a crash, likely because they personally need Or would like one, but ultimately the value of property always eventually increases, and waiting is always a huge gamble and has meant many people never get their foot on the ladder.

Yep, if I’d have listened to them last year when they were predicting a Brexit property crash I would still be renting, and would have had to spend an additional 25-30k to buy the same house I bought last year when prices were lower.

If you listen to these people you’ll more than likely be renting for even longer and pay even more money than if you just bought when you were first able to. They’ve been going on and on about a property crash since 2016, if not earlier, and all that’s happened is prices have gone up. I think for many it’s just wishful thinking.

there will likely be a price drop within a year

I've heard that a few times from someone or other each year for the past 20 years.

The truth is, nobody really knows, it's only a guess. But a pretty expensive guess if you get it wrong.

there will likely be a price drop within a year

And this is why folks wait and miss out. It’s not likely at all. It’s possible. Just as it’s possible it could increase.

I found the week or two after lockdown everything went nuts and lots of houses who have been on the market a few months went off very quickly. So people have started adding properties at overinflated price to try their luck. I've found stuff that has been on the market for six months plus is being relisted at £50k plus more than it was a week ago. thing is most people aren't stupid and most of that stuff hasn't moved.

Basically whilst the first couple of weeks were mad everything has slowed down quite a lot now cos of the overinflated prices.

We are looking causally but probably not gonna buy anything til October as my husband is still on probation in a new job and I am waiting for my flat to sell (it's under offer) so we can be chain free (we live now in a property owned by my in laws). I think a lot of these properties may start coming down a bit as recession bites a bit more and people's immediate post lockdown rush calms down. I may be wrong but if i am i am. and if i find something i love in the meantime I wouldn't hesistate but just keeping calm and not getting carried away