Market state for selling

brit1234

buggy_boy wrote: »

Cause overseas super rich buyers have relevance to the vast majority of the uk housing market....

It's the ripple effect. When foreignbuyers poured in high house prices rippled out accross the south east. Now they have pulled out negative priceshave rippled out of the southeast. So yes it does have a big effect.

pinklady21

OMG Crashy has found a protege.....

Crashy_Time

buggy_boy wrote: »

Cause overseas super rich buyers have relevance to the vast majority of the uk housing market....

They help (or helped) inflate London, and this in turn helps keep the price stats positive, and this in turn affects buyer (and lender) sentiment. The opposite happens when the price stats turn negative. IMO you need to think more about what actually drives markets/bubbles before making sarcastic comments

Crashy_Time

http://www.telegraph.co.uk/business/2018/01/25/mortgage-approvals-five-year-low-number-london-renters-hits/

Out,_Vile_Jelly

ianG wrote: »

I reckon this is the way a property should be presented, don't you think? ;-)
https://www.zoopla.co.uk/for-sale/details/43030644#QByVjhMBY5M5hj06.97

I live in this area; it's a big estate with many very similar houses so easy to benchmark. There is a lot of activity and since the £250k stamp duty was abolished, prices have surged. I do find it baffling how much my very ordinary house is "worth" on paper, but the ensuing LTV means I pay less for a two bed end terrace with garden than I did on rent for a one bed flat ten years ago.

Also my house had not dissimilar decor and presentation when I bought it (probate sale). Luckily I looked past the alarming 70s orange bathroom tiles and saw the size and proportion of the room.

House prices would have to drop 60% for me to be in negative equity.

Crashy_Time

Out,_Vile_Jelly wrote: »

I live in this area; it's a big estate with many very similar houses so easy to benchmark. There is a lot of activity and since the £250k stamp duty was abolished, prices have surged. I do find it baffling how much my very ordinary house is "worth" on paper, but the ensuing LTV means I pay less for a two bed end terrace with garden than I did on rent for a one bed flat ten years ago.

Also my house had not dissimilar decor and presentation when I bought it (probate sale). Luckily I looked past the alarming 70s orange bathroom tiles and saw the size and proportion of the room.

House prices would have to drop 60% for me to be in negative equity.

If only everyone else was in the same boat :rotfl: Most people care a lot about the price of their house, even 20% drops are life changing for many, even those who own outright, because so much of their net worth is wrapped up in a property.

buggy_boy

brit1234 wrote: »

It's the ripple effect. When foreignbuyers poured in high house prices rippled out accross the south east. Now they have pulled out negative priceshave rippled out of the southeast. So yes it does have a big effect.

Lots of high end flats were and are being built around London, this is only a fraction of the property market.. London and the south east saw the biggest increases in the last 10-20yrs.. These gains are obviously unsustainable, so it makes sense that the areas that saw the biggest boom would see the biggest down turn but the down turn is still a tiny fraction of the gains made... The current situation is hardly unexpected given the uncertainty of Brexit and how London will fair. We still don't have nearly enough houses for the population which will always stifle any major crash.

buggy_boy

Crashy_Time wrote: »

http://www.telegraph.co.uk/business/2018/01/25/mortgage-approvals-five-year-low-number-london-renters-hits/

Yeah people are not selling, have you seen the cost of moving, with all the fees people are not being forced to sell so they are staying put.

buggy_boy

Crashy_Time wrote: »

If only everyone else was in the same boat :rotfl: Most people care a lot about the price of their house, even 20% drops are life changing for many, even those who own outright, because so much of their net worth is wrapped up in a property.

Housing stock value is around 6 trillion, with mortgage debt around 1.4 trillion. There is still a lot of equity in the UK housing market. Your right people do care about the price of their house, a 20% drop is highly unlikely and even if it did as long as their mortgage stayed the same and was affordable its really not an issue. You need high unemployment and relatively high interest rates to get forced sellers to see a sustained house price crash. Interest rates are still at historic lows and employment is at a high. Everyone likes to think they are now worth more because their house has increased in price but they are hardly going to panic if it drops a little, it only really matters when you come to sell.

buggy_boy

Crashy_Time wrote: »

They help (or helped) inflate London, and this in turn helps keep the price stats positive, and this in turn affects buyer (and lender) sentiment. The opposite happens when the price stats turn negative. IMO you need to think more about what actually drives markets/bubbles before making sarcastic comments

Yeah because you understand markets and bubbles, I mean in 2014 you were bleating on about the same rubbish saying a crash is coming now... Your still waiting... You need to understand housing in the UK is like a religion, even if prices go down there is so much pent up demand those that are currently priced out will dive in as soon as they can afford. Unless we see forced sales which will need to see high interest rates and high unemployment the massive crash you seem obsessed with just wont happen... Add to that what ever party is in power would pile in billions to stop that happening and given the current public backlash on the banking sector it is unlikely there would be a huge appetite for mass repossessions.

2016 saw repossessions of just 7,700, in the crash of the 90s it was 10 times that amount. At the moment although house prices have gone up they are still affordable, maybe not for everyone and obviously not for you (hence the chip on your shoulder), but when you dont have enough housing stock it is inevitable that prices will be driven up and some people will lose out, its supply and demand, just like the highest demand is in the south east so the south east has the highest prices.