Coronavirus effect on property markets?

gfplux

[DELETED USER] said:

Fingers crossed we are about to see a severe crash, ideally 50% down but even 20% would be very welcome.

In diagnosed cases or deaths. I think that is very optimistic as it is such early days.

Thrugelmir

gfplux said:

[DELETED USER] said:

Fingers crossed we are about to see a severe crash, ideally 50% down but even 20% would be very welcome.

In diagnosed cases or deaths. I think that is very optimistic as it is such early days.

I'd suggest that the reference is to house prices. 

triathlon

[DELETED USER] said:

Fingers crossed we are about to see a severe crash, ideally 50% down but even 20% would be very welcome.

Yep, there is probably a few others around as well who failed in the past to work and invest for a better life and now look forward to easy pickings, so they think. As the days pass though I am starting to alter my view that at last you lot will get the collapse you want, yes there will be difficulties, but I suspect that we will start rebuilding in 3 months and treat this episode as a slight annoyance on our credit cards, many of us not even that

[Deleted User]

triathlon said:

[DELETED USER] said:

Fingers crossed we are about to see a severe crash, ideally 50% down but even 20% would be very welcome.

Yep, there is probably a few others around as well who failed in the past to work and invest for a better life and now look forward to easy pickings, so they think. As the days pass though I am starting to alter my view that at last you lot will get the collapse you want, yes there will be difficulties, but I suspect that we will start rebuilding in 3 months and treat this episode as a slight annoyance on our credit cards, many of us not even that

3 months is ridiculously optimistic. Where did you get that from, Boris Johnson?

As well as problems with estate agents and mortgages and moving companies there is the issue of disinfection. I can see house sales factoring a deep clean of the property into the price. That's going to be in effect for at least 6 months, possibly more.

Then you get the two classes of people: those who had it and are immune and those who haven't. The latter group will be in a much worse position for buying a property.

anonymous12124

triathlon said:

Yep, there is probably a few others around as well who failed in the past to work and invest for a better life and now look forward to easy pickings, so they think. As the days pass though I am starting to alter my view that at last you lot will get the collapse you want, yes there will be difficulties, but I suspect that we will start rebuilding in 3 months and treat this episode as a slight annoyance on our credit cards, many of us not even that

1. Some of us want a house price crash so that a vast majority of people who are priced out of the market can join it. There are literally millions of young people who can't even put down a 5% deposit. If the prices come down it'll give them a chance. For those who stand to lose a huge portion of their equity, tough luck. It's more important to get the next generation on the market than having those already on it moving around.

2. If you think this is going to be a slight annoyance you haven't got the foggiest idea what's happening out there. Entire sectors have been shut down. Soon we'll have the highest unemployment rates we've ever seen too, businesses cannot surivive this long being in the cold. The impact will be felt for years.

Getting_greyer

The labour market is v interesting to consider atm.  Lots of people not in work, but income coming from the state.  In my mind its not same as huge levels of unemployment in normal times.  If the state can help keep firms ticking over then a lot of the unemployed will be back in and firms can start to produce again.  House market prob goes on as normal.

Of course if this goes on until say summer 21, how many firms are still around?  Then you do have real huge unemployment.  If that's the case we will have billions invested into the Green New Deal and mass buildings of green social homes.  House market ???? 

Thrugelmir

The economy will evolve and adapt. The weakness of an interconnected global world has been totally exposed. More to life than just making a profit. 

lisyloo

anonymous12124 said:

triathlon said:

Yep, there is probably a few others around as well who failed in the past to work and invest for a better life and now look forward to easy pickings, so they think. As the days pass though I am starting to alter my view that at last you lot will get the collapse you want, yes there will be difficulties, but I suspect that we will start rebuilding in 3 months and treat this episode as a slight annoyance on our credit cards, many of us not even that

1. Some of us want a house price crash so that a vast majority of people who are priced out of the market can join it. There are literally millions of young people who can't even put down a 5% deposit. If the prices come down it'll give them a chance. For those who stand to lose a huge portion of their equity, tough luck. It's more important to get the next generation on the market than having those already on it moving around.

I understand your sentiment. However I still see there being an issue that a collapse in house prices doesn't come on it's own.

Many of those people won't have the same income, they might be on one of the governments capped schemes or on benefits, so does it help people in general.

When things go back to a more normal state (however long that is) then high levels of employment will be coupled with increasing prices.

I think your sentiment is noble but isn't there a fundamental issue here that a collapse is accompanied by many not being able to buy and a good economy/high employment means that demand/supply will kick in again?

There will be some winners and losers and there always are.

madstar99

We could really use some advice. We are first time buyers, purchasing a small 2 bed property in the South East. We have a mortgage offer in place, our deposit is there and our solicitors are running the final searches. We are really anxious about the current situation and it's impact on our finances. How big is the risk of ending up in negative equity? We are both lucky enough to have secure jobs and the current mortgage offer would be about a third of our monthly income (and less than the rent we are currently paying!).  We felt at the time that the house was a good deal compared to others in the area. The house is currently unoccupied and has been since February as it was being rented out by the current owners. 
We have found a company willing to do a home-buyers survey but this is obviously a large cost and now we aren't even sure we should proceed. Any advice welcome!

Getting_greyer

Are millennials about to become the new boomers?