Let's assume your current home is worth £500,000 and the larger property you're hoping to buy is worth £800,000. A very plausible scenario. The difference is £300,000. See, we are not just pretty faces. Now imagine property values fall by 5% across both properties. Your home is now worth £475,000, a reduction of £25,000. Not particularly welcome news, you might think. But the property you're buying has fallen to £760,000, a reduction of £40,000. The difference between the two is now £285,000 (rather than the £300,000 as previously). Despite your own property falling in value, the cost of making that move has reduced by £15,000. Of course, property markets rarely move in such a neat and orderly fashion. Different locations, price brackets and property types behave differently. And there are other costs to consider, including Stamp Duty, moving expenses and mortgage borrowing. So it is not straightforward, but then what is? But the principle remains. If you're moving up the property ladder, a softer market can work in your favour. In this case softer means lower performing. Rather counterintuitive, isn't it?
The trouble with trying to time the market
An old business partner of mine had a wonderful saying that he would regularly share with buyers and clients:
'There are only two times you should really buy a property. Now, or ten years ago.' I've always liked that. Not because property prices always rise. They don't. Nor because everyone should rush out and buy a house today. They absolutely shouldn't. What he meant was that buying a home should primarily be about your circumstances, your needs and your plans for the future, rather than trying to predict what the property market might do next. We have learnt that that is a fools game. And he had a point. If your family is growing, you're running out of space, you need a home office or simply want a different way of living, those reasons don't disappear because the property market has become a little less enthusiastic. Indeed, a quieter market might present an opportunity that wasn't available when prices were rising and competition between buyers was stronger.
A little less competition, a little more action. And certainly a little more choice
There can be other advantages too. When the market is particularly busy, desirable homes can attract multiple offers, buyers feel under pressure to make quick decisions and negotiations can become very competitive.
In a more measured market, buyers may have more time to consider their options, conduct their due diligence and negotiate sensible terms. It is much less of a bun fight! That's not to suggest every seller will accept a lower offer, or that the best homes suddenly become bargains. Well-presented, correctly priced properties will always attract lots of attention. But there is something to be said for buying a home without feeling that you have to make one of the largest financial decisions of your life before someone else gets there first. Decision making in this context can be compromised.
So, should you move now?
Possibly. But not simply because the market is quieter. Sorry, as I said earlier, nothing is straightforward.
Your finances need to work. Your employment and personal circumstances need to be right. Your mortgage arrangements need to be comfortable, and the property you're buying needs to suit your longer-term plans.
You also need a realistic understanding of what your existing home will sell for, rather than what it might have achieved in a different, stronger market. And that's where good advice becomes important. The right question isn't necessarily 'Is now a good time to buy?' but 'Is now a good time for us to move?' If the answer is yes, a quieter property market could make that move more achievable than you might expect. At Cooke Curtis & Co, we help people understand not just what their property is worth, but what that value means for their next move. If you're considering buying a larger home in Cambridge or the surrounding villages, but aren't quite sure whether the numbers or timing make sense, we'd be very happy to talk it through. No pressure to move. Just experienced, honest advice to help you decide whether now is your time. To be frank it isn’t in our interests if the time I not right, so you can rely on our advice.
