Will UK property prices weather a new recession? Apparently not.

Jack_Johnson_the_acorn

Blacklight wrote: »

That's a great example unless the thing you're selling is something you need, like your house or your car.

And when you do sell, you'll end up paying the same or more on rent in an avg house if you're lucky.

Oh well, horses for courses.

Blacklight

Jack_Johnson_the_acorn wrote: »

And when you do sell, you'll end up paying the same or more on rent in an avg house if you're lucky.

Oh well, horses for courses.

I think all the get rich quick wannabes already STR'ed in 2006 and missed the boat in 2009. Can't be many left after being burned so bad last time.

Joe_Bloggs

If/when/as house prices are falling then surely the proportion of deposit required for a mortgage is going to increase. This makes it harder for first time buyers without the bank of mum and dad.

Reduced Loan to Value ,increased negative equity will tend to reduce the number of properties on the market. This enforced lock in reduces the choice of mortgage products for the owner to one and creates many forms of stress.

Many sales will be distressed and cash buyers will snap them up before the details even get to the decreasing number of estate agents windows.

J_B.

paddyrg

Blacklight wrote: »

Why would anyone sell if prices were falling.

Death
Divorce
Debt

For three...

Blacklight

paddyrg wrote: »

Death
Divorce
Debt

For three...

Oh right, guess they will fall at least 50% then.

doire_2

Blacklight wrote: »

Oh right, guess they will fall at least 50% then.

He didn't mention anything about 50%

Graham_Devon

Rinoa wrote: »

Guardian, Hometrack and Capital Economics in 'prices might fall' shocker.

Is there any paper, or new outlet that you won't simply ignore?

Outside the express that is.

Rinoa

Graham_Devon wrote: »

Is there any paper, or new outlet that you won't simply ignore?

Outside the express that is.

I am not swayed one iota by press opinion. Journos haven't a clue, including those of the express.

I'll let you into a secret Graham, we bulls only cheer on the express because it's amusing to witness your reaction.

Graham_Devon

Jack_Johnson_the_acorn wrote: »

This is why prices aren't going to drop massively, only those needing to sell will move.

What difference does that really make?

Say a seller wants 100k. But the house is valued at 70k. The buyer won't get a mortgage because the asking price is too high.

House value is still 70k, regardless of whether it sells or not.

Therefore those who need to sell, will sell for lower prices, and house prices will fall. Sellers not selling doesn't really make any difference. Reduces supply, sure, but causes more problems in the long run.

Graham_Devon

Rinoa wrote: »

I'll let you into a secret Graham, we bulls only cheer on the express because it's amusing to witness your reaction.

Oh right.
Thanks for letting me in on the secret. Though now I just feel pretty sorry for you.