How to get the best home price in a bear market

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Homebuyers are haggling hard as rising mortgage rates push the pandemic real estate boom into reverse.

Prices fell for the fourth consecutive month in December, which means values ​​are now down 4.3% from their August peak, according to the Halifax lender. The average house sold in December for £281,272 – £12,720 less than in August.

“Everything is negotiable at the moment,” said Emma Fields of Break Weaver, a buying agent. “Every deal I’ve done lately has been discounted.”

“Without a doubt, across the market there are certainly cuts,” she added. She said buyers have room to negotiate 5 to 10 percent of asking prices. “All sellers expect to be smashed.”

The annual growth rate has fallen from a peak of 12.5 percent in June to 2 percent – and that number will soon turn negative. Halifax expects home prices to drop 8% this year.

Andrew Wishart of Capital Economics, a research advisory firm, said the Halifax data suggested the downturn in the housing sector was “more advanced than we previously thought”.

Capital Economics had forecast a larger drop of 12 per cent, but Mr Wishart said prices could fall further, with risks dropping “strongly”.

What does this mean in practical terms if you are trying to buy or sell a home now? Here, experts share their advice on how to get the best deal in a bear market.

First time buyers

First time buyers have a higher chance of getting discounts now than buyers higher up the property ladder, where sellers are more discretionary.

“If you’re buying a new building, there are a lot of deductions. Developers are desperate to get rid of them. There will be all these buy-to-rent people that people want to get rid of before the capital gains tax credit changes,” said Ms. Fields.

But Alex Goldstein, a buying agent based between Yorkshire and London, said summer could be the perfect time for first-time buyers to make the move. Prices are likely to fall further – and mortgages could be cheaper, he said.

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