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I imagine it’s swings and roundabouts- if you’re looking in a reasonable area, in 6 months time the local agents will still be trying to maintain previous prices, that’s a given.
On the other hand, buyers may be willing to pay less because of the squeeze (and mortgages will be crap), but the squeeze happens to everyone and it may mean a lot fewer houses are put on the market - so the ones that are, will go for a high price. I don’t think there’s ever a good time, it just depends on your personal circumstance.
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Assuming that you mean Scotland.
In my experience it's normal for houses, especially desirable ones, to go above asking due to the nature of the blind bidding system. From what I understand though the market in and around Edinburgh has gone absolutely mental. My brother has been trying to buy a place for the last 6 months and every house he's bid on goes for a minimum of 25% above asking one went for almost 40% above asking.
As far as the effect that these high successful bids have on future asking prices it's hard to say. I'm not an estate agent but in my experience estate agents in Scotland are less aggressive than those in England as many of them are also solicitors firms and regulated by the law society of Scotland. Add to this the blind bidding system means that even if the price increases the asking price increases it won't be to the highest asking price of comparable properties in the street / area.
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The basic answer is "fuck knows".
Lots of people have been predicting that prices w fall at some point but they just seem to keep on going up. If things continue as they have done then it's likely that £125k will become the new normal. On the other hand, increasing interest rates may cause a drop in prices but no-one really knows.
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Jameo
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@M_V
Ok so, I understand things work a bit different ‘oop here, norff of the border’ but… our market seems to be going a bit mental right now. I understand this because Mrs M_V and I recently found a house we’d have liked, we viewed it on Friday and it went to closing on Tuesday. We felt a bit under pressure so made an offer that wasn’t as high as we could have gone but we weren’t successful, by quite a margin.
It’s ended up going for almost 25% over the asking price.
So what I’m wondering is, when the market ‘calms down’ does that mean that property prices just go up to match what the market is paying?
Ie, this property was on the market at, say, £100k, sells for £125k so 25% over asking. 6 months time market has ‘calmed down’ and their neighbour decides to sell, are they going to list at £100k and sell for £105-110k or are they going to list at £120k and sell at £125k which looks like a fair price as its a smaller % over asking but actually it’s same price?