Is this the right or wrong time to buy a house?

[mikey]

Things are sticking on the market longer, especially at the top end. There also seems to be quite a few larger properties springing up on the market. I think the owners are trying to get their money and run, downsize or move abroad.

[Tony]

I think it's fair to say that the top of the market has always taken longer, but the problem at the moment is a lack of 'first time buyer' stock.

 

However... this is being addressed in some new developments where units are being targeted at a low price to help people get on the ladder.

 

I think that this will help to give some more impetus into the whole market locally - which is still in very good shape anyway.

[Fudbeer]

http://www.guardian.co.uk/uklatest/story/0,1271,-4439844,00.html?gusrc=ticker-103704

 

University town house prices soar

[skala]

me and hubby to be bought our house on a new development december 2002 moved in in jan 2003 so we've been here about a year and a half! bought it for 65k and now its worth 120k its doubled in the time we've been here and they are still building on the site! you wont get anything on this site for under 100k now whats that about??? it's not even a posh area!

[miggy]

Price crash? Not going to happen, except possibly at the very top end.

 

It's all relative. The cost of a decent house in crookes or walkley, nice areas, is still far below equivalent houses in many other areas of the country where realistically salaries are little different for the equivalent prospective buyer. Prices may slow down, even stagnate, but they are still below "national market value" in many cases which is why sheffield is a good investment.

 

Also, as others have pointed out, house buying is a UK oddity. In most countries they rent or even build. Buying a house is a strange and very british obsession. Friends in other parts of europe find it very bizarre.

 

First time buyers will take longer to buy a house, will rely on more help from parents, and will rent for much longer. House values may grow slower and houses may take longer to sell.

 

Also bare in mind that sheffield is already odd because in many areas houses go for well above asking price and within 2 weeks. This doesn't happen that much elsewhere, even in a rising market. This is very location dependant tho.

 

Finally, mortgage payments as a % of income are still fairly well balanced and that's probably the overriding consideration.

[Mr_E]

What's going on? Is this thread months old? Houses in my area were on the market for less than a week before shifting at the beginning of summer. They're not shifting at all now. Sorry, I can't help it, but I'm beginning to panic. It's OK if you know you don't have to move. But relocation might not be an option for me. I'll need as much cash as I can get my hands on soon.

[miggy]

What area are you selling in?

[Tony]

Don't worry Mr_E, it's just the time of year, holidays and all that. It always takes longer in August.

[zorba]

Just a little point of reference, spotted on the web today:-

 

http://news.bbc.co.uk/1/hi/business/3602968.stm

[Tony]

Hmm, so hang on then, why does the Council of Mortgage Lenders say that July figures were:

 

• 131,000 loans. The highest total recorded since the previous high of 135,000 in Aug 02.

• Gross lending 3% higher than June and 13% higher than Jul 03

• Record house loans of £14.7bn compared to £13.9bn in June.

 

That is a very different picture. The answer of course lies in the BBA report that you cite not including all lenders, only banks. The figures that I quote include ALL lenders, and are far more accurate.

 

So the statistics also back up no evidence for any 'crash'.

 

Why are so many people wanting to look on a non-existant doom scenario?

 

Here's the link to the true figures