Alliance & Leicester have said that homebuyers putting off buying homes in expectation of a price fall, on average lose out on £33,689 if they wait for four years. While one in five waited to purchase a property because they feel that houses are overpriced, nearly three quarters of buyers say prices increased while they were waiting.
The average amount that property rose while they were waiting for a fall in the price was £33,689, over an average wait of three years and ten months. Almost 19% say that the value of a property they put off buying rose by over 50%.
The survey found that home buyers who waited over five years lost even more, as the average price for a home five years ago was £101,550 compared to £189,852, which is an increase of 87%. Around 78% of people think that properties are overpriced, and 15% are waiting for a fall in prices. 75% of this group are prepares to wait for over a year, while 33% are prepared to wait for a property for over five years!
Our view
All market and investment timing is difficult, property generally moves in a five year cycle and we are in our second year of slow down. It will not be long now before markets push back up. Give it another year and then you may be just about right. Leave it longer and you may be too late.