Feeling totally overwhelmed by the market

[fluffycupcakes]

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.

So nice to find this thread and not feel alone. We have a buyer and part of accepting their offer was explaining to them we couldn’t guarantee any timescale as we haven’t found anywhere (and loads of agents wouldn’t let us view until we had an offer - but that’s another rant for another day).

Now it’s come to buying and I’m so fed up with the bun fight. Two offers over asking rejected on houses so far. Then on Sunday we offered on a house which already has 4 offers over asking but they are insisting on having an open day at the weekend and going to best and final on Monday. Asked what it would take to not have the open day and I’m told £35k over the asking price. It’s pure greed! Surely the banks are questioning these extortionate house prices when it comes to offering mortgages?

Coming to the conclusion we won’t be moving any time soon and there will be a lot of negative equity floating around in a few years time.

I can't believe the stories here. I thought it was top of the market last year but it was nowhere near as bad as this.

@outonmyear..
I got house revalued with another agent. Said to put it up for more.

I contacted existing agent in writing and told her. We need to increase £ to market value and offer buyers first dibs. EA told me they wouldn't sell it at that price and will drop off keys.

Keys got put through my door today while I was home just thrown in literally. As I opened door EA ignored me and pulled off.

I had toget my own house removed from Rightmove on the phone.

My buyers could have out in a counter offer and met near the middle. But didn't. They aren't going to find anything like mine at the price I sold for. In fact they will pay much more.

Going to see a house today £50k over our budget, not what we want but theeee only house that's not sold in our budget atm. Trying not to get pessimistic about it selling before we get there as were 5th on the list to view apparently and also not too optimistic about actually liking the place from the photos. We'd have no savings left after this if we bought it. I'm not sure how I feel about it all. It's so depressing because I know I don't want this house but I'm not quite sure we can afford to gamble not owning a house any longer.

So concerned about everything financially. Rents have gone up too in our area so can't even fall back on renting somewhere cheaper unless we go into something much smaller in a not so great area.
6:30am and I've got wine on my mind. I'm not happy Rishi I'm really not!!

I really don't think the stamp duty break is the biggest reason for all this at this point, I can't believe £15,000 saving is having that much impact particularly when it's so evident how much more house prices are rising in some areas. There has to be something else driving this frenzy. I don't think it'll just stop in June, if anything there could be more pent up demand from the people convinced it's due to SDT who are waiting for that to pass!

fluffy I'm looking-not-looking and given a few properties a chance. This one might surprise you, good luck.

@userchange856 - I suppose it's a combo of stamp duty and people moving out of London because of rethinking lives / WFH now. They will have bigger budgets and seem to be overbidding.

@fluffycupcakes

Going to see a house today £50k over our budget, not what we want but theeee only house that's not sold in our budget atm. Trying not to get pessimistic about it selling before we get there as were 5th on the list to view apparently and also not too optimistic about actually liking the place from the photos. We'd have no savings left after this if we bought it. I'm not sure how I feel about it all. It's so depressing because I know I don't want this house but I'm not quite sure we can afford to gamble not owning a house any longer.

So concerned about everything financially. Rents have gone up too in our area so can't even fall back on renting somewhere cheaper unless we go into something much smaller in a not so great area.
6:30am and I've got wine on my mind. I'm not happy Rishi I'm really not!!

Such a horrible situation and wishing you lots of luck.

As somebody who is living in a compromise house they don’t like at all and is now stuck - don’t rush into something you know you won’t like. Particularly if it eats into your savings.

I’ve never known such a crap choice of houses on the market.

North London activity feels like it’s calming down, with many properties that didn’t sell for various reasons sitting there with no taker at that price. Not much is coming on to the market either.

I suspect a lot of the frenzy buying was the result of the dominoes effect, people sold on the back of stamp duty holiday then need to find a house and ready to put down a fair bit more to cut it by end of June. Some long chains will inevitably collapse when the ultimate seller cannot find anything suitable for that price, leading to a flurry of property back to the market this summer, at lower price now the tax discount is ended.

I agree, @userchange856. I think lockdown is a much bigger driver than the stamp duty holiday, people have reevaluated where they want to be and are suddenly very aware of all their houses faults!

Our seller hasn’t found anywhere, a month after we offered. We’d agreed to be patient but to aim to complete before September, so we weren’t too worried, to be honest... he was always clear he didn’t want to rent, as he thought he wouldn’t get back to owning, which we understand... but yesterday our estate agent called to say that our buyer doesn’t want to wait anymore, she’s decided that she wants to be moved in for the summer. The EA has suggested putting a lot of pressure on the seller, because they don’t think we’ll easily sell again if we have to go back to market, and to be honest, I don’t think the seller would wait for us to find someone else anyway. I imagine he’ll offer to one of the other asking price people.

I feel sick. I’ve been awake for hours worrying about it. The house is a stretch and we are probably overpaying, but it’s gorgeous and pretty perfect for us. I’m also pregnant; and didn’t want to be moving in late pregnancy...

The EA doesn’t want to “hassle” the buyer by phoning to talk to her, she’s tried once but got no answer. I suspect that might say it all 🙈

There’s no sign of it slowing down here; I suspect it’ll be worse in the summer when everyone waiting for the holiday to end lists, so I can only see prices going one way for the rest of the year at least. I’m really hoping that I’m wrong.

@Tulipwood you mentioned there will be alot of negative equity in a few years. That's what I've been thinking too but also been thinking of times gone bye when a home cost £20K and in todays market is worth £200k. Is this a time we are living in where that price shift is happening? Will these houses with =£50K added on since last year remain at this price and those who haven't yet sold also be selling at this new market rate. Maybe this is the new market level for house prices that's here to stay.

@TakeYourFinalPosition

I agree, *@userchange856*. I think lockdown is a much bigger driver than the stamp duty holiday, people have reevaluated where they want to be and are suddenly very aware of all their houses faults!

Our seller hasn’t found anywhere, a month after we offered. We’d agreed to be patient but to aim to complete before September, so we weren’t too worried, to be honest... he was always clear he didn’t want to rent, as he thought he wouldn’t get back to owning, which we understand... but yesterday our estate agent called to say that our buyer doesn’t want to wait anymore, she’s decided that she wants to be moved in for the summer. The EA has suggested putting a lot of pressure on the seller, because they don’t think we’ll easily sell again if we have to go back to market, and to be honest, I don’t think the seller would wait for us to find someone else anyway. I imagine he’ll offer to one of the other asking price people.

I feel sick. I’ve been awake for hours worrying about it. The house is a stretch and we are probably overpaying, but it’s gorgeous and pretty perfect for us. I’m also pregnant; and didn’t want to be moving in late pregnancy...

The EA doesn’t want to “hassle” the buyer by phoning to talk to her, she’s tried once but got no answer. I suspect that might say it all 🙈

There’s no sign of it slowing down here; I suspect it’ll be worse in the summer when everyone waiting for the holiday to end lists, so I can only see prices going one way for the rest of the year at least. I’m really hoping that I’m wrong.

What a stressful situation - particularly when you are pregnant.

Your estate agent wants the commission and for the sale to continue. Your house will get another buyer even if you have to wait a while which may be no bad thing if it is stressing you out. There will be another house to buy if this one falls through. It’s very easy for me to say that though, I know. I don’t know your circumstances.

Good luck with this tricky situation. I don’t know how anyone moves at the best of times, never mind now.

Sometimes doing nothing and waiting can be a relief even if it seems like a disaster at the time. There seems to be a lot of relieved people who have stepped away from this market, and I’m guessing I will be one of them soon. Xx

@Miasicarisatia

Also lots of EA's are suggesting offering the seller a financial incentive to move into rented And the race is on🏎️ Can EA get to the finish line and bag that juicy commission before the bubble bursts🏎️

Lol - got to laugh. It's more than commission from the sale. It's also commission from that conveyancer they said you need to switch to that works soooo well with your buyers conveyancer (which was recommended to the buyer too by them) and the mortgage broker intro. commission on that mortgage deal organised for you (payable on you taking out that mortgage). Quite alot of money. Guess that's why the Agent ignored me and dumped my keys through my door (pissedoff.com).

Things here in Scotland are dire!

There is no stock, no one seems to be selling, so those that are are being snapped up before anyone has the chance to even view. Like you said you get 10 mins to quickly view something you’re spending the biggest investment of your life on. It’s madness!

I would completely back out of it all if I could but we moved back from abroad and need to find a home. People like us are probably part of the problem, the pandemic has given everyone a chance to reevaluate their lives and what is important. Houses seem to be one of them.

There are a number of drivers here, lockdowns and wfh have meant people have re- evaluated their lives. Many realise they no longer have to commute to work so are moving further out to get bigger, cheaper properties. We are both key workers but despite continuing to commute and be out we were definitely at home more, seeing niggling things about the house and neighbours that meant we bit the bullet to finally move. People losing their jobs are downsizing, relationships have broken down. There is pent up demand after lockdowns, the stamp duty break. And at the middle / more expensive end of the market you have older people who have been wary of going out or seeing family, so probably aren’t moving house. Meaning little inventory at this price point. So family homes are under great demand. I can’t see it ending for some time.

And I think the final driver is that the market was slow for a long time because of Brexit uncertainties and people putting off moving.

If only we all had a crystal ball ...

@Paulina23 - I don't see North London calming down at all! I've just taken a look at RightMove and saw that some totally unrealistically priced houses are staying on the market for ages, and anything over £2M needs to be perfect; near tube, big garden etc. But otherwise things are selling fast.

@TakeYourFinalPosition if I found the perfect house I'd probably just go for it all in right now and suffer it out for a while to recover savings. Good luck with house!

We have a few issues. We can't find anything even to view, so few houses are entering our criteria that, week on week there's nothing and even the renovation jobs are getting ridiculously expensive so we'd have no ££ left to do the place up and no guarantee a bank would agree a mortgage on it( I'm talking ceilings with large holes in here)

I am concerned this is the new market level of prices going forward. In the least I think it will take a long time to unwind this craziness and in the mean time we're paying rent. Feel in an utter conundrum tbh. What can I do though. I will just have to get on with it. Maybe today will work out. Leaving in an hour 🤞

I think it will calm down. We were finally ready to buy just as the Brexit vote happened. With all the talks of a property market and economy crash that came with it, there seemed to be a knee jerk reaction of buyers rushing to buy and sellers deciding to stay put! We only got our house because I rang as soon as I saw it come on, went straight to view and had to put an offer on there and then as they already had other viewings lined up.

I would speak to estate agents and see if you can get notified of any new properties before the go to market and on Rightmove etc. Also could you put leaflets through doors like Kirstie and Phil recommend?

[quote mumieone]@Tulipwood you mentioned there will be alot of negative equity in a few years. That's what I've been thinking too but also been thinking of times gone bye when a home cost £20K and in todays market is worth £200k. Is this a time we are living in where that price shift is happening? Will these houses with =£50K added on since last year remain at this price and those who haven't yet sold also be selling at this new market rate. Maybe this is the new market level for house prices that's here to stay.[/quote]
Yes I am the same, on one hand I think surely this can’t last but then prices have just been increasing over the years with no signs of slowing down so maybe it’s here. I hope it slows a little, surely future generations will be completely frozen out if it doesn’t?

@NewHouseNewMe How do you see how fast properties in a given postcode sell on rightmove? I keep track of how much per square meters new houses are coming up for and it seems to be flattening if not going down. Not claiming it’s market wide data, but curious to hear from your analytics

I use Land Registry data landregistry.data.gov.uk/app/ppd to search for sales information in specific postcode and directly work out the volume and actual prices of sale. It's around 3 months old data but tells you accurate numbers. Lot of times the price of house advertised on Rightmove to the registered sale price is quite different. In few cases I was tracking, it was even 10% lower. Perhaps there were issues found during survey, but certainly not in line with what the EA had told me about that property.

@Paulina23 Interesting.. I have no scientific way of working this out but anecdotally I've seen a colleague's house (very well decorated/extended but not a desirable area) sell over asking price to international buyers in a couple of days and many such examples.
The price point seems to be 1m-1.5m in good areas where there is immense interest. There is less demand above that - I guess this is down to a smaller pool of buyers who can stretch to it.

@Blossomandbee Also could you put leaflets through doors like Kirstie and Phil recommend?

We tried this last week. No response at all yet. I’ve no idea really how long someone might want to think about it before responding. I’m not very hopeful though.

I’m kind of worried about my sale too - buyers still don’t have a mortgage offer in place despite us accepting their offer in Feb! Maybe it’s a blessing in disguise? I’m certainly not rushing them and if it falls through at least the clock resets to zero. We might even get more for our house (though the offer we accepted was a good one).

House was really bad, damp everywhere, all up the walls, and extension that looked like it was falling apart and all was strategically missing from pictures on rightmove. Back to square one.