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.

House market in my area is not so hot as the beginning of July when stamp duty holiday just announced. It is cool down a bit especially they announced we are officially in recession.

But most houses already on the market are still overpriced & reduced a bit recently not massively drop.

Wait November furlough & mortgage holiday over, Lots forced sale houses & reprocessed houses by bank come into market to turn the whole price down like spring 2009.

@Mildura

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

Nobody knows, it's all just a guess.

I’ve said on here plenty of times if a home is a home and you can get a manageable mortgage on a overpay 10 year fix and not planning to sell in a few years go for it.

@Mildura you say it’s all just a guess. It isn’t. Otherwise you could say the same about the stock market and trade analysts. They wouldn’t get paid their heft salaries if it was all just a guess. I trade in my stocks in my ISA.

You go on the historical, current data and current financial environment and cycles to determine the direction and set buy and sell points.

Without the government stepping in to actually buy people houses there’s not much more they can do. Historical data on house prices prove they go down in recessions that’s not a guess it’s a fact. Millions will lose their jobs, the stamp duty prop doesn’t do anything for first time buyers, without a chain going forward the market stagnates, these are all facts.

In answer to those that say the UK population is increasing due to migration so supply/demand is rubbish. Most economic migrants will not have the funds to be buying houses they will be seeking social housing which is capped by the LHA.

@Lightscribe

I suspect it's likely that your stocks and shares ISA isn't hugely dependent on the residential property market in the UK.

The article linked to by a previous poster, stating 'predictions' made by the Resoloution Foundation thinktank, an organisation I admit to have previously been unaware, makes some from generalised statements. A lot of 'could' 'if' and 'might' in there.

There isn't just one housing market, there are hundreds, possibly thousands across the country. Some propery will go up, some will go down, some will stay broadly the same. Working out which ones do what is pretty much guesswork.

The residential property market is very different to analysing the stock market, very different factors affect them. There are a not insignificant number of people who are paid hefty salaries to predict the stock market. But do they perform better than a blindfolded monkey throwing darts at a newspaper's financial pages?!!?

www.stockinvestor.com/35446/beating-market-surprise-surprise-monkeys-win/

Best of luck working out where residential property prices are headed, there are those out there who have spent half their working life trying to get it right and still aren't terribly accurate.

[quote Mildura]**@Lightscribe

I suspect it's likely that your stocks and shares ISA isn't hugely dependent on the residential property market in the UK.

The article linked to by a previous poster, stating 'predictions' made by the Resoloution Foundation thinktank, an organisation I admit to have previously been unaware, makes some from generalised statements. A lot of 'could' 'if' and 'might' in there.

There isn't just one housing market, there are hundreds, possibly thousands across the country. Some propery will go up, some will go down, some will stay broadly the same. Working out which ones do what is pretty much guesswork.

The residential property market is very different to analysing the stock market, very different factors affect them. There are a not insignificant number of people who are paid hefty salaries to predict the stock market. But do they perform better than a blindfolded monkey throwing darts at a newspaper's financial pages?!!?

www.stockinvestor.com/35446/beating-market-surprise-surprise-monkeys-win/

Best of luck working out where residential property prices are headed, there are those out there who have spent half their working life trying to get it right and still aren't terribly accurate.[/quote]
“Best of luck working out where residential property prices are headed, there are those out there who have spent half their working life trying to get it right and still aren't terribly accurate.”

Yes they are called property pension funds and banks that actually lend the money. The BoE predicted a 16% drop, and lenders have deleveraged risk by removing most 90% LTV products from the market. And your right you can invest in property in the stock market, but again these funds are suspended...I wonder why.

www.legalandgeneral.com/investments/investment-content/property-fund-suspension-notice/

Locally, they think it's the rental market that is going to take off in event of a recession. So people who can afford a Buy-to-Let are investing their money in property as it's not making much sitting in a bank anyway.

@Lightscribe
Although you make some valid points, investments funds generally don't invest in residential property, pension funds are prohibited from investing in residential property. They invest in commercial property which is a very different beast, and I feel the commercial property market is going to be decimated due to the affects of homeworking.

[quote Barrychuckle2]@Lightscribe
Although you make some valid points, investments funds generally don't invest in residential property, pension funds are prohibited from investing in residential property. They invest in commercial property which is a very different beast, and I feel the commercial property market is going to be decimated due to the affects of homeworking.[/quote]
Yup, commercial property is screwed...

New properties in my area now seem few and far between in any price bracket, after the flurry in June and July. 1 every few days if you are lucky, quite a slow down. And those on Rightmove seem increasingly reduced.

Smallish midlands Town, for reference.

Things seem to have cooled a bit here in the past month or so. Lots of properties coming on the market and getting sold very quickly June particularly. In July sales also seemed vey rapid.
I expect things will slow down more in Autumn/ Winter.

[quote Barrychuckle2]@Lightscribe
Although you make some valid points, investments funds generally don't invest in residential property, pension funds are prohibited from investing in residential property. They invest in commercial property which is a very different beast, and I feel the commercial property market is going to be decimated due to the affects of homeworking.[/quote]
They aren’t prohibited from investing in residential property. Not sure where you got that from. Many pension funds yes predominantly invest in commercial, but also have allocations of residential i.e. ‘build to rent’ etc

fundcentres.lgim.com/fund-centre/Unit-Trust/UK-Property-Fund

“ Fund snapshot

What does it invest in? Invests in UK office, retail, industrial and residential property. May also invest in other UK property related investments, such as shares in property companies and real estate investment trusts as well as hold cash.
How does it invest? Actively managed, and typically has at least 80% invested in property, though the Manager may reduce this to 60% if necessary to maintain liquidity and performance of the fund. May invest up to 20% in residential property and may also develop properties.”

Selling prices flat/falling here in Home Counties.

eg 2 houses in the street I used to live on, all identical houses, on for about 10% less than selling for a year before and no interest at all (used to sell very quickly).

BUT new houses coming on the market often asking 10% more than other houses in their streets have sold for, or at least at the top prices ever paid in those streets.

Go figure! In practice, these over-optimistic sellers seem to drop prices soon or pull out.

It feels like things are slowing down in terms of prices. Things are staying on the market but there is hardly any new properties coming on.

Yep, big time.
Identikit house to ours (except ours has an en-suite, kitchen extended & bigger garden) just sold for about 100k more than what we paid for ours 3 years ago....and sold in 3 days. Madness.
Also lots of others in area down as SSTC in a few days/weeks with big prices, so presume they were near the asking.
Can’t see it lasting at all with pending unemployment soaring but does seem to be a big surge in prices around my way.

@Thatusernamewastaken

Where in the country are you or what type of place, eg town, suburb, village etc?

I'm in an outer London suburb/commuter belt and most houses (all types) are overpriced so not selling here.

We are in Manchester and it’s crazy. Our house went for over the asking price in one day and we had a bidding war to get the house we wanted after they had one day of viewings

@xxyzz live on the outskirts of a big town on the south coast. Been lots selling at inflated prices but think it will die down

I agree there has been a surge in many places and it surprises me, however I think the phrase 'false dawn' really sums things up.
I hate to be negative, but the rise has been fueled by the stamp duty cut, pent up demand and people just wanting a distraction from the challenging times we're in.
The mortgage holiday ends this month, Furlough in October & I think we're heading for a winter of increased cases and more lockdowns.
I really want to be wrong, but this will lead to an even bigger house correction next year, a 20% drop wouldn't be unrealistic. The drop is already starting in Central London...
Appreciate some people have to move, but if you have any discretion I'd stay put for another year at least or even consider renting.

We are just in the process of buying a new house in our current town (south west) and I dont think prices have gone up that much. We only sold ours for a few thousand more than we bought if for 3 years ago and it went within days of going on the market.

The monthly mortgage cost for our new (much bigger house) is only a tiny bit higher as the interest rates have dropped so low though, so tbh I dont care if house prices crash massively once we've moved. We have a big deposit and are fixing for 5 years, and its hopefully our forever home. I'd rather house prices crash in the new house than lose all the equity in our current house which is too small for us.

The stamp duty holiday has definitely had an impact, houses around here are going for more or less asking price within days. To be fair though it's a lovely town that's always held its value quite well.

It's noticeable that the properties near me (Surrey) are starting to take a while to sell. There's plenty around here which have been up for sale for longer than 6 weeks. The ones that are selling quickly are the ones which are priced to sell.

Property is so expensive here that if you're a FTB and now need a 15% deposit that's going to be at least another £10k that needs to be found which is a lot for most people to find in a short period of time.

Place mark

They look like they are young down now. Even with the Stamp Duty thing, 3 bed and 4 bed houses are being reduced in my area to where they were priced around Xmas time, after going up in June/July.

My sale fell through. I'm actually relieved.

Not young. Going. Down.

Daughter put her house on 30th July. A few viewings price reduced from £550 to £499950 to £460. Very depressing

@Smallgoon

Did you end up moving into your flat?

I got keys ages to my new house ago but couldn't move in for ages as had loads of work done. Loads of supply delays as well.

*I got keys to my new house ages ago but couldn't move in for ages as had loads of work done. Loads of supply delays as well.