Charlie Don't Surf Posted June 16, 2005 Share Posted June 16, 2005 Every time I mention the possibility of a crash my mother and her boyfriend just tell me 'well prices are still shooting up in Cambridge' and I get stories of gazumping and houses selling before they even get on the market. Is this true, or are they just blurring now with 2 years ago as the elderly, infirm and those with vested interests sometimes do!? Quote Link to comment Share on other sites More sharing options...
Nick Posted June 16, 2005 Share Posted June 16, 2005 I have not been watching Cambridge, but I have been watching the Royston area, which is only 15 miles down the road. I agree that some houses are selling, but at a much slower pace. The market is very slow at the moment, Some of the houses that have been up for sale for a long time have reduced thier asking prices. The houses that have sold signs out side are just sold subject to contract, the contracts have not been signed. There appears to be moving vans!!! Time will tell. Quote Link to comment Share on other sites More sharing options...
Pedro Posted June 16, 2005 Share Posted June 16, 2005 I have not been watching Cambridge, but I have been watching the Royston area, which is only 15 miles down the road. I agree that some houses are selling, but at a much slower pace. The market is very slow at the moment, Some of the houses that have been up for sale for a long time have reduced thier asking prices. The houses that have sold signs out side are just sold subject to contract, the contracts have not been signed. There appears to be moving vans!!! Time will tell. <{POST_SNAPBACK}> I live in Cambridge and have noticed a marked slow down, and reduction in the more silly asking prices in the surrounding villages. There is a 2 bed detached near here which has been on the market for over a year - started at 250k, now is down to 200k but is still not sold. Our BTL landlord is selling (very inconvenient for us) because he thinks prices are going down. He has put our 2-bed on the market for 189k - although at least one of the agents valued it at 160k (we overheard this). There have not been many viewings, and those who viewed did not seem that interested. It will probably still sell as it is in a VERY good location, but there are lots of properties on at c. 10-20k less than 6 months ago. Quote Link to comment Share on other sites More sharing options...
bob_builder Posted June 16, 2005 Share Posted June 16, 2005 (edited) The market in Cambridge seems to be going up and down. A few months ago there were lots of For Sale signs, now a lot of these have changed to SSTC. However, there are a lot of SSTC signs still up after a couple of months so it does not look like they are being snapped up. One thing that still shows is that a sensibly priced property can still sell in a week where as those at ridiculous prices are still on the market from last year! The prices in Cambridge have not really grown in the last couple of years, in any case, and they are only up about 20% on 4 years ago. Most of the large growth came before that. Edited June 16, 2005 by bob_builder Quote Link to comment Share on other sites More sharing options...
Jayne The Payne Posted July 6, 2005 Share Posted July 6, 2005 Agree with you Bob, actual SELLING prices (land registry figures) peak seem to have been mid-2003. Of course ASKING prices are record high, but that's irrelevant. If you want to convince your mother and her boyfriend, direct them to nethouseprices.com so they can see for themselves the difference between the perception they have of prices (most likely asking prices) and what houses who do sell actually go for. What I have noticed of late: an increasing number of sub-200k 2-3 bed houses in Cambridge itself. Those had virtually vanished and seem to have made a come back. What do you think? Quote Link to comment Share on other sites More sharing options...
TWT Posted July 11, 2005 Share Posted July 11, 2005 Hi, Moved to Cam in april, since then I have been surprised about the number of to let and For sale signes... But, they seems to go quite fast :angry: However for sale do not stop appearing and I wonder how long these will go. I relly think people try to cash in there profit. In my case, I wonder what to do as I do not see a major crash here, -10% in the next to years at most. And if I do a simple calculation, renting two years would pay the 20% so is it worth waiting? Crash? I hope but TimeWillTell TWT Quote Link to comment Share on other sites More sharing options...
bob_builder Posted July 12, 2005 Share Posted July 12, 2005 In my case, I wonder what to do as I do not see a major crash here, -10% in the next to years at most. And if I do a simple calculation, renting two years would pay the 20% so is it worth waiting?<{POST_SNAPBACK}> If we take your assumption that house prices will fall by 10% over the next two years then the options are as follows: 1) Buy now House costs x 25 year mortgage at 6%, interest is 1.5x Total cost x + 1.5x = 2.5x 2) Rent then buy House costs x Two years rent at 4%, rent is 0.08x After two years, house costs y = 0.9x 25 year mortgage at 6%, interest is 1.5y = 1.35x Total cost 0.9x + 1.35x + 0.08x = 2.33x So assuming the house costs £200,000 you would save £34,000 (I am basing the 4% rent on my own rent for the house I live in compared to the current cost of my neighbours identical house.) Quote Link to comment Share on other sites More sharing options...
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