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Original poster

Feeling totally overwhelmed by the market

456 replies

fluffycupcakes · 01/05/2021 08:28

Will it ever cool down? It's not even financially any more although we've certainly lost money between selling our house and now renting waiting to buy.

Every buyer out there seems to snap up a property before we can breath. I'm not comfortable putting an offer on the second a property reaches the market and yet if I don't it appears we won't ever be able to move. Just so depressed about it all. Any indications the market might slow down?
Sorry for such a depressing post but have people really benefitted from the stamp duty relief? We seem to now have to mortgage up on the extreme price increases instead of making any savings.

OP posts:
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Original poster
fluffycupcakes · 17/05/2021 15:14

@umbel that's terrible. It's very difficult at the moment. That's happened to us too. Seems you have to put an offer in almost immediately, where we are it's more of a case of also having to get the very first app. to view or else forget it there's no chance.

OP posts:
FelicityElectricity · 17/05/2021 15:23

We're in south Oxfordshire. There seems to be a few more houses coming on but old ones are selling very fast

NoToast · 17/05/2021 15:53

And looking at Helpmehs article. In the high demand bracket here (family homes, garden, ok suburb) they're asking 25% over last year's prices for dated, nothing special, boxes.

ThursdayWeld · 17/05/2021 15:57

But how can the market calm down, when so many people are waiting for it to do so?!

pinksnowball · 17/05/2021 16:40

@umbel that's awful, I'm sorry. I can't believe they wouldn't accept an offer from you on the Monday morning after viewings on the Saturday! That's just mad. Whereabouts are you?

But how can the market calm down, when so many people are waiting for it to do so?!

@thursdayweld I wonder if some people might change their mind about moving once things start to go back to normal again? Especially all the people who are trying to leave London. Perhaps once commuting starts up again and living in a city is more attractive, people will be happier to stay.

Alonim · 17/05/2021 18:09

But how can the market calm down, when so many people are waiting for it to do so?!

This is a really good question, I don't know the answer to.

I suppose we're all waiting because we can't afford to move. So it has to calm down - prices will have to drop so that people can buy?

Is that right?

ThursdayWeld · 17/05/2021 18:12

Yes but if loads of people are waiting for the market to calm down, the minute it does, they will all enter the market!

Alonim · 17/05/2021 18:18

What if recession hits and loads of people lose their jobs - once furlough ends ... interest rates rise or mortgages are difficult to get ...

I don't know.

I see what you mean and agree with you. Just can't believe this madness can go on. Are we all that that rich? Is it possible for everyone to be in so much debt? Is that sustainable?

umbel · 17/05/2021 18:20

@ThursdayWeld

Yes but if loads of people are waiting for the market to calm down, the minute it does, they will all enter the market!
That’s what I keep thinking. I also think that many of these properties must be going to BTL landlords, or developers, because there seem to be so many cash buyers. And now the building trade is grinding to a halt too, so no new builds. It’s a perfect storm!
Buddywoo · 17/05/2021 18:24

I was an estate agent for 30 years in different areas of the country.

At some point after this boom the market will slow dramatically, if not collapse. It always does after such a boom.

umbel · 17/05/2021 18:42

@Buddywoo

I was an estate agent for 30 years in different areas of the country.

At some point after this boom the market will slow dramatically, if not collapse. It always does after such a boom.

That’s a reassuring read @Buddywoo, thanks. Fancy putting any kind of timescale on it? We’re seriously thinking about giving up on the idea for now and trying again at some point in the not too distant future. A bit more time saving might give us a chance to catch up if the market slows soon.
flashbac · 17/05/2021 19:04

@Buddywoo

I was an estate agent for 30 years in different areas of the country.

At some point after this boom the market will slow dramatically, if not collapse. It always does after such a boom.

Were the Tories printing money and pumping in cash in order to satisfy their land owning/property owning/developer donors then though?

Prices would have levelled off from April onwards. All the predictions stated this. Then Sunak decided to throw petrol on the fire. He will probably do so again if there are signs of a downturn.
There's also too much cheap money around.

This why I have decided not to wait as there's no guarantee further stimulus won't be added come September particularly if the indian variant runs rampant and there another lockdown.

Alonim · 17/05/2021 19:07

Not answering for @Buddywoo - as I'm not qualified.

But things are different now aren't they? Once upon a time, back in the 80s and 90s things were allowed to crash.

From my limited knowledge - they keep doing the quantative easing/printing money - which I don't fully understand. And all the props to keep it going. Of course that can't go on forever. But they can keep it going for longer than previously during earlier booms and then busts.

Can they?

flashbac · 17/05/2021 19:12

@Alonim

Not answering for *@Buddywoo* - as I'm not qualified.

But things are different now aren't they? Once upon a time, back in the 80s and 90s things were allowed to crash.

From my limited knowledge - they keep doing the quantative easing/printing money - which I don't fully understand. And all the props to keep it going. Of course that can't go on forever. But they can keep it going for longer than previously during earlier booms and then busts.

Can they?

We've also got a supply and demand issue. Not sure if that existed in the 80s and 90s.
rabbitcarrot · 17/05/2021 19:23

The last straw to break the camel's back is inflation, inflation already hits America. It will get worse in the autumn & winter. they got no choice other than increasing the interest rate.

Once that starts, the correction of housing market will follow.

flashbac · 17/05/2021 19:28

@rabbitcarrot

The last straw to break the camel's back is inflation, inflation already hits America. It will get worse in the autumn & winter. they got no choice other than increasing the interest rate.

Once that starts, the correction of housing market will follow.

Interest rates have a long way to go in order to reach 2007 levels though. I think we will then see more 50 year/interest only mortgages. The government will move hell and high water to ensure prices stay up.
Didyousaysomethingdarling · 17/05/2021 19:39

@rabbitcarrot

The last straw to break the camel's back is inflation, inflation already hits America. It will get worse in the autumn & winter. they got no choice other than increasing the interest rate.

Once that starts, the correction of housing market will follow.

They won't raise rates, they can't afford to do so. They're going to use financial repression and fake the inflation numbers. They've already said they're going to 'look through' inflation.
TakeYourFinalPosition · 17/05/2021 19:51

I can’t see there being a crash.

I do think prices will level off, although I’m not sure if it’ll be this year... but I don’t think they’ll lose value, just maybe have 6 months/a year when they don’t go up as much.

I don’t think a crash would be allowed to happen now, for all the reasons people have said above. And I suspect that means there will be more people who just weren’t ready to be on the property ladder who will really struggle to get on it. .. and I should remind myself of that when I’m frustrated that we can’t sell our flat!

A friend of mine is hoping to buy next year; she’s got three kids and rents a four bed right now. I can’t see how she’ll be able to afford to buy unless her or her partner get a really good job... I feel for her.

But I’m no expert. I did six economics modules at uni and that was enough for me!

Itscoldouthere · 17/05/2021 19:52

Well I’m still finding the market here inNorth London pretty crazy, I saw a nice house on Saturday not the best location but very nicely done.
EA tells me 3 offers already in, if I want to be considered I need to offer by tomorrow morning.
There is now nothing for me to view, I’ve seen 25 places in 4 weeks!
I’m having the rest of this week off and going away for a few days as I feel so stressed and worn out.

Outonmyear · 17/05/2021 20:26

House prices have gone too far away from average wages and even what banks are prepared to lend the majority of people. Surely there comes a point that continually stoking these prices will lead to social problems and people being so in debt they can’t spend elsewhere.

I think this frenzy suits this time period, and the government, as it makes it look like everything is prosperous when things are on a knife edge when the support stops.

I’m not sure what percentage of sales are actually going to go through either because of chains collapsing.

I agree they will try to stop them falling but hopefully they will be allowed to level off and cool.

At some point everyone who wants to move due to the pandemic reordering their lives will have done so and things might calm down a bit.

I’m also hoping that if things open up again there will be less urgency and money will be spent elsewhere and there will be more to think about than the four walls you are in. That’s what I am hoping for myself anyway 🙃

TheRedHat · 17/05/2021 21:19

@flashbac I also think there's a supply and demand issue

Don't know where you are in the country but in North Oxfordshire you can barely turn a corner without bumping into a new housing development with hundreds of houses being built!

tanguero · 17/05/2021 21:37

TheRedHat Mon 17-May-21 21:19:45
@flashbac I also think there's a supply and demand issue

Don't know where you are in the country but in North Oxfordshire you can barely turn a corner without bumping into a new housing development with hundreds of houses being built!

There certainly is a supply and demand issue. The equivalent of TEN CITIES THE SIZE OF MANCHESTER will need to be built by 2040 to house the extra five million people we'll have by then (Office for National Statistics projection).

UK population growth......the elephant in the room that no-one ever talks about.

Alonim · 17/05/2021 21:40

There’s way too many flats here in London. Maybe not houses ...

No supply and demand issue if you count flats though.

umbel · 18/05/2021 08:23

Surely part of the supply and demand problem is that the people who need bigger houses can’t afford them, and they remain occupied by elderly couples whose children have grown and left home. Perhaps there is a shortage of suitable homes for them to buy, or perhaps there is nowhere safer to leave their money?

flashbac · 18/05/2021 08:55

Just found out my neighbours are moving but they are keeping their house to rent it out. Around here that is very common. Its compounding the issue.