Waiting for the current housing boom to calm down

[stuckinaditch]

We were originally planning to buy a new (larger) property last year but decided to wait due to the current property boom fuelled by pent up demand, more WFH, v low interest rates and government policy. Things seem to be peaking now in many areas currently with many houses selling in a week at over asking price, bidding wars, etc

We have decided to monitor the market and wait as we are not in a huge hurry and don't want to get involved in what seems to be a frenzied market. Obviously there are risks to waiting but equally there are risks to buying now.
Has anyone else decided to do similar?

Here are the links.
www.telegraph.co.uk/news/2018/08/22/one-six-baby-boomers-owns-second-home/

www.google.com/search?q=one+in+ten+adults+owns+a+second+ghome&rlz=1C1OPRB_enGB548GB598&oq=one+in+ten&aqs=chrome.0.69i59j46j0l6j46.3639j0j15&sourceid=chrome&ie=UTF-8

A lot depends on your circumstances. We've sold and have had an offer accepted on a house, however it's likely to be our forever home so the resell value isn't a concern for us and we've got a reasonable sized deposit so negative equity is unlikely to be an issue if house prices drop, should make a difference either as we don't plan to sell.

There's also a school of thought that when furlough ends etc a lot of people may have their houses repossessed due to job losses, a rise in interest rates, which will see a glut of houses and prices drop.

You could always sell now and rent, if you're confident house prices will reduce, but it's a risky strategy unless you're convinced, otherwise you could end up being priced out of the market.

House prices, certainly in my area, have remained stagnant for the last 10 odd years so this has come as a welcome relief., and feels like prices are playing catch up

We sold our house last summer and moved to rental, thinking that we’d been offered more than expected for the house. We are currently renting but hoping to complete before June deadline.

The street we sold on was a nice family street with lots of older owners. However since we’ve moved the house opposite has become a HMO and the house next to it which is bigger than the one we sold is on for sale at £35k less than we got for ours. (Been on a while now). Another on the street came on at the same price we sold at despite it needed complete renovation (which we did to ours over the 10 years we lived there). It has since reduced by £50k.

I feel really sad for my neighbour across the way, but I was thinking when the renovation needed neighbours house came on the market we should have waited but glad I didn’t now. Even in a heated market there will be changes to the location buyer and seller have no control over such has HMO, new developments, roads etc that can negatively effect your house.

I may be paying more than I’d like for my next purchase, however at least I am not trying to sell with now adverse conditions in a heated market. Old neighbours who are desperate to sell, can’t and everything around them is being snapped up at a ridiculous rate.

In a round about way house prices theoretically go up and down a lot and the only time it’s really matters is at point of sale/buy. I think there is likely to be a little dip, followed by a flatline.

Very interesting to read this thread one year one - the benefit of hindsight!

Please may I ask, if those of you who were waiting are still waiting?

@Didyousaysomethingdarling we have bought and according to zoopla The property we have bought has increased 16% in the last 10 months.

we bought a lovely if not perfect house at what felt at the time a “premium” price we couldn’t afford it this year.

Yes and I'm happy with my choice. The economy is going to shit my area has traditionally not been very desirable typically you would ask for money under. Bills are rising massively we are very comfortable here and don't really need to move it's more a want. We are playing it safe.

Isn't it just!!

id love to know how people got on & if they're still
waiting!!

Thanks for the update!!

I wish I'd s t r E t c h E d beyond my comfort level & bought last year,prices have rocketed around here (again/still/as always) and even stretching again I can't afford anything that makes moving worth it.

id have had a year of reasonable bills under my belt and been in a better position, but I was too hesitant to stretch to my limit in case of cost of living crisis, so I suppose I was right, but I've luckily still got my 'unstable job' & had I known that then I'd have made the move. Hindsight. Grrrrr