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Buying in a declining market

We’ve written it before and we’re writing it again - now could be a good time to buy a home.

And we’re not alone in thinking this - The Sunday Times agrees with us too.

It is better to buy in a declining market - because you won’t be the only one to spot a good deal when the market starts to turn.

With the Northern Rock starting to offer sensible mortgages again, you could secure the house of your dreams now - before the pent up cash ready renters who are poised to pounce once they feel the market has hit rock bottom sweep the rug from under your feet.

Perhaps it is time to revisit the market? Judging by the significant increase in visitors to this site in recent weeks, and estate agents reporting an increase in interest and sales - you won’t be alone.

January 2009 - our view of the market

We at Buyitprivately.com take a rather controversial stance on the housing market - and we think that if you are buying a home (as opposed to purchasing an investment) - then we think now is a great time to be buying, as long as you are prepared to live in your home for at least the next three years.

Think about it - according to the latest Halifax figures house prices have fallen 16.2% year on year in December. Last December they reported a year on year fall of 5.2%

So on that basis, and with a little crude arithmetic, we estimate that if a house had been worth 600,000 at its peak, then that same house according to the Halifax would now be worth around 475,000.

Now on top of that, vendors (according to the Royal Institute of Chartered Surveyors) are offering on average 9% below asking price.

So lets say you make an offer on a house now listed for 475,000 - that brings the price down to 432,250.

From 600,000 to 432,250 - a saving of almost 30% from the peak. Now think back to all the sensationalist media stories of properties dropping 30% in value - not so sensationalistic now are they?

We recall a time, back at the peak, when many properties right across the UK would have had people queuing up to put in offers.

The fact is, if you want to secure your ideal property, in the area you want - and at the price you can afford - then we think now is a great time to do it. No competition, no sealed bids - and a choice of some excellent housing stock and very receptive vendors.

Yes, there’s always the danger that prices may fall a bit further - but if you’re buying a house to live in then just how important is that to you? You’re purchasing the house you really want at potentially 30% less than what you would have paid for it a short time ago. You’re going to be living in it - you are buying a home.

Happy New Year

A Happy New Year to all our visitors and vendors. Lets hope this year brings a bit of joy back to the housing market!

Remember - if you are selling - keep the price keen and the house spruced up.

And if you are buying - there are some real bargains out there to be had - happy house hunting.