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.

@jolokoy Sometimes a decent salary isn't enough, you need to have a decent enough deposit.

@jolokoy I'm sorry the prices have risen so much near you. I do wonder how many people are put off the UK, or parts of the UK, due to the house prices. It has been a major consideration for us in choosing an area to relocate to.

I think for me, you know, like any developer - you get recruiters every week offering jobs in Germany for higher pay and the living expenses are so much lower. It really does just make you think: sod this! I'll go where I'm wanted! Where I could easily afford to have a baby. I guess it would be a German baby but ok! :D I'm flexible!

@jolokoy Well good luck with whatever you choose! :)

If you work on the assumption that in most cities in the North a typical entry level 2 bed terrace is £120k-£150k a couple need a combined income of £45k or a sole income of £25k I would say it's perfectly doable. But as people have alluded to earlier it's the deposit which is the challenge as lenders would expect £12k - £20k deposit.

@HexyAndIKnowIt

The house across the road from DS went on the market last week for £15k more than he bought his for back in October. It needs a new kitchen and bathroom and modernising throughout.

I’ll be absolutely stunned if it sells for that.

Prices here are up though, just not by that much.

Quoting myself here, but it's now SSTC in less than a week.

@HexyAndIKnowIt Doesn't mean they've secured asking price, though does it? I paid 10% lower than asking for my flat, and this was pre-covid.

[quote Smallgoon]@HexyAndIKnowIt Doesn't mean they've secured asking price, though does it? I paid 10% lower than asking for my flat, and this was pre-covid.[/quote]
They have full asking. DS was speaking with a neighbour this morning.

@FrontToBackTree

We are in SE London - one of the affordable bits. Price has already dropped as low as we can afford to drop it. If you look on rightmove no flats without gardens are selling no matter what price they are.

That's not really true though, is it. If the price is low enough someone will definitely buy it. I baulk at the thought of living in London but even I would buy a flat there if it was 10k.

I know a couple selling who say "we can't sell it under X price". That's great, just be prepared to wait a good few years then.

@BeijingBikini
That is good advice, I sold a house I bought once for £30k less than I paid for it, when I felt the market had risen.
Naturally I did this with a very heavy heart, but the new owner sold again a year letter for a further £30k below what I'd sold it for!
Sometimes it's better to take a small hit now rather than a much bigger one later down the line. The London flat market is looking less desirable than anytime in the last 20 years due to the threat of Lockdown sadly. I'm hearing this from agents in NW London which is arguably one of the most desirable parts.

I would be interested to hear from any estate agent on here, where they can be anonymous. What do they actually think will happen in the next 12-18 months.

Not in London or cities, but an average 3 bed in the middle of the country. My assumption would be there's always going to be demand for this kind of family house and it's unlikely the price would drop, but I will admit to having no expertise to back that up.

"Demand" doesn't just mean "I want a house" though. Demand also consists of availability of credit, which depends on employment, economy, interest rates and banks' willingness to lend. None of which are looking great in the near future....

To correct you slightly, interest rates are looking good if you're a borrower as money is very cheap at the moment. However as you say getting credit is the real challenge mortgage lenders are being uber cautious at present when lending funds. They are cognisant of a house price crash, Deutsche Bank are predicting a 20% drop and they are one of the more respected financial institutions.

No! Just looked on rightmove, and put on comparable description to mine (3 bed, semi), and they were £50-75000 less than I expected. The cheaper ones perhaps are smaller and in less favourable areas, but one was directly comparable.

I blame it on all the new houses being built.

Wish I hadn’t looked😟

Yes, interest rates are great now but give it a while after No Deal Brexit - if we start to see inflation, then they could be raised. That would drop the house prices pretty quickly.

Job uncertainty will also cool demand somewhat.

Beijing that's why I've been looking to buy now, with the low interest rate. I have a sizeable deposit too. Despite the recession threat it has seemed to make sense.

I have noticed the flurry of buying and selling in my area slow this week.

News this morning not great: www.theguardian.com/business/2020/aug/12/uk-economy-covid-19-plunges-into-deepest-slump-in-history

Another Guardian relevant story, looks like most of the experts are now predicting a crash later in the year

www.theguardian.com/money/2020/aug/13/no-silver-lining-for-first-time-home-buyers-even-if-prices-collapse

In a FTB, now half way through a purchase. I love the house, have a 20%+ deposit, bank happy to agree the mortgage. Am I nuts to continue?

The other side of the debate on this thread is, there will still be more demand than there are houses for UK citizens, and house prices still tends to stabilise our go up over the longer term.

Some 'experts' have predicted a crash for each year out of the last 20.

Nobody knows, it's all just a guess.

I think most people on this thread are looking in England but I'm looking in rural Scotland. Requested a home report for a tiny do-er upper in the middle of nowhere yesterday on for (and home report valuation of) o/o 115k. The estate agent got back to me and said that due to high demand the price was now o/o 160k and they had an offer much higher than that on the table. It's been on since Friday.

Mine goes on today, and I already reckon I'm priced out of what I'm looking for!

@Focusanddetermination

In a FTB, now half way through a purchase. I love the house, have a 20%+ deposit, bank happy to agree the mortgage. Am I nuts to continue?

The other side of the debate on this thread is, there will still be more demand than there are houses for UK citizens, and house prices still tends to stabilise our go up over the longer term.

If you're happy with the house and you don't intend to move in the next couple of years I would say go for it. Only you can make the call, and as others said predictions of a crash are just that, predications.

I'm in the same situation OP.

My rationale is that

1. I'll never know when is the right moment to buy. As my mum says, the right moment is when you can.

2. my intention is to stay min. 5/7 years. Of course, life can change, but as of now, I'm not buying as short-term investement.

3. I could lose money in the long run, that's a risk but most likely less than if I was paying a rent for 5/7 years: I've been living in London (and loving it!) for over 3 years, I've spent more than the amount of my deposit. In just 3 years.
   I mean, that's scary. And I can't even decorate! And it's a flatshare!

Prices not going up in my town, an affluent market town in the South East. We’re inundated with new builds. Our has been on the market 2 months (we’ve had 4 offers fall through in that time). Our identical house as a new build is £50k more expensive than ours is, plus we have improved/extended. I think it depends on the price bracket you’re looking at. Lots of movement up to around 450/500k here but above that it’s quite slow. One house on our road is on at 850k and been on for almost a year.

House prices are dropping in the city we live in. People are assuming that they can get a really high price but they are not realising it. I think prices will tumble in six months