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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.
aggi
Jameo
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?