Finding the perfect home is a challenge and 79% of those questioned expect prices to be higher in 12 months but buyers are still picky, the latest quarterly confidence survey from Rightmove shows.
Some 32% said they have found a home in their ideal location, but 58% are still looking or waiting at a time when national asking prices have seen their biggest annual rise in over six years.
The survey also found that downsizers are the least willing to settle for second best with 92% not willing to compromise while first time buyers are slightly more willing to do but 85% still wouldn’t look elsewhere.
‘There’s a real mismatch between buyers’ no-compromise stance on their most favoured place to live and the rising tide of prices,’ said Miles Shipside, Rightmove director and housing market analyst.
‘Playing a waiting game and holding out for the right property in the right location could prove risky as, with prices in some locations rising by the month, buyers may discover that the one they’ve been waiting for is over their budget,’ he added.
With buyer demand exceeding available property supply in some areas, and the market momentum gathering pace in most locations, buyers are faced with limited choice, the survey suggests.
‘It’s still early in the year, so there is some encouragement that one third say they have found their first or next home where they wanted it to be. There needs to be more property coming to market however, to make sure that the needs of those still looking are met. People who want to sell and buy again are sometimes nervous of putting their house on the market if they cannot see much for them to buy,’ explained Shipside.
‘However, once you have a buyer lined up for yours, you are in a much better position to pounce and close the deal on the property you want. If it takes time for you to find your next dream home, your buyer will often wait. There is no legal obligation to move out, so just keep the buyer warm and it will put you in a much better negotiating position when you find somewhere, as you can then offer your sellers a quick move,’ he pointed out.
Shipside also pointed out that even among first time buyers it is perhaps surprising that such a large number are still not willing to compromise.
‘The by-product of the credit crunch years is that fewer are willing to compromise on location, and are staying put until a property in their chosen area comes along. Yet if people were willing to widen their location criteria even within a few miles, they might find they can find the type of property they want, but at a more affordable price,’ he said.
‘Furthermore, the downsizers who are least willing to compromise might run the risk of leaving moving too late and have less energy to fully embrace the freedoms of moving into a smaller home and a new community,’ he added.
