Has the market peaked?

benjus

kilby_007 wrote: »

What exactly does "pause for breath" mean? I keep hearing this in the media but it sounds like a nonsense cliche to me. Did buyers just collectively agree to have a few months off from house hunting? Or did prices get so insane that nobody wants to play the inflation game any more?

If prices drop but cheap credit is still widely available, sooner or later the people who were priced out of the market will re-enter it, which will cause prices to stabilize and probably start increasing again. Of course everyone wants to buy at the bottom of the market so there will be a delay in people re-entering, but eventually Fear of Missing Out will kick in. However if credit becomes significantly harder to obtain or more expensive then the outcome will be different and prices could drop further.

Crashy_Time

benjus wrote: »

If prices drop but cheap credit is still widely available, sooner or later the people who were priced out of the market will re-enter it, which will cause prices to stabilize and probably start increasing again. Of course everyone wants to buy at the bottom of the market so there will be a delay in people re-entering, but eventually Fear of Missing Out will kick in. However if credit becomes significantly harder to obtain or more expensive then the outcome will be different and prices could drop further.

Cheap credit isn`t available like it used to be, that is why the property market is kept alive only by low interest rates. However, if you do manage to borrow at the top of the bubble you must be prepared for the effects of rising rates.

brit1234

Yes prices pretty much every where have peaked apart from some parts of south west and Birmingham and Manchester areas. The Land registry figures last week showed price falls in every London borough for the first time since the credit crunch and this is in the traditional peak price rising period. Propertiesin the South east have stalled selling as well. The London peak was a couple ofyears ago where most of the rest of the country peak was a few months ago.

Prices had to come down they were totally unaffordable, I believe as sentiment changes prices continue to fall to more affordable levels.

padington

More people every year are pouring into this country to the point the U.K. is growing the size of a new city of people every year. Property prices are on a one way street called 'up', just expect occasional traffic jams and reversing, that's as good as the downside will get.

Unless Corbyn wins or we get a black swan event.

Central London is going down because it's been over taxed making elsewhere a smarter bet.

Expect a Small Brexit dip of 5% at some point ( which might not happen) but also expect another significant upswing ( which most probably will) both of which will be hard to time. After 5 years the renters will regret staying on the sidelines.

Interest rates are going nowhere.

Here's the latest news on prices ...

https://www.theguardian.com/money/2017/may/22/average-asking-price-for-homes-in-uk-hits-record-high-of-317000

Look at the big picture, we're in a 60 year plus property bull market with population getting out of hand for this little planet.

MobileSaver

brit1234 wrote: »

I believe as sentiment changes prices continue to fall to more affordable levels.

Affordable levels? What do you reckon Brit, "50% off by Xmas"?

Conrad

I've worked around the property market for 3 decades. This is a very typical temporary lull, nothing more.
Not a bad time to snap up a deal. An investor client of mine just had the 3 bed new flat in Barking he was purchasing, fall through due to £40k down valuation.


DONT MISS THE OPPORTUNITY TO BUY INTO THE LULL. All my working life I notice those that are most nervous about market troughs, are those that buy too late and miss the opportunity. They always think next month will be cheaper - you cannot perfectly time the market - but always be prepared to buy before the crowd. Perfect timing is a mugs game, you need to accept this or forever miss the opportunity buys.


B2L lending has dried up thanks to the income tax changes coming through. I am about to complete on a new place, I am not remotely bothered about typical market waxing and waning. The market will adapt, perhaps fewer investment buyers though for now.


Biggest cloud on horizon would be a Corbyn Govt as his borrowing binge could well lead to interest rate rises, not too mention higher unemployment thanks to his socialist cabal pushing through costly employment regs (socialist France has had double our unemployment rate - customers wont pay the price of lavish employment regs, they buy Chinese instead). I'm on fixed rate money for now though.

lisyloo

However, if you do manage to borrow at the top of the bubble you must be prepared for the effects of rising rates.

Surely this is extremely simple to avoid.
i.e. get a fixed rate.

LadyGMadameToThee

Deluded and naive. You sit on your hands and I'll climb the ladder and sit on my little nest egg. Fewer buyers equals less competition equals price compression. Many thanks :j

LadyGMadameToThee

There's as much chance of Comrade Corbyn becoming PM as there is of me being reincarnated as the Queen!;)

Crashy_Time

lisyloo wrote: »

Surely this is extremely simple to avoid.
i.e. get a fixed rate.

Doesn`t help you if you need to sell?