Coronavirus and Housing market?

moneysaver2x

Will coronavirus and economic recession cause house prices to go down / up?
I'd expect less people selling now, for a few months.
How will these changes affect house prices?

MovingForwards

People are still buying, properties are still being listed for sale on a daily basis, I've not seen any difference in prices where I'm buying.

hazyjo

It's unprecedented. How will anyone know! We don't know if it's lasting a month, a year, or worse!

TheCheerleader

In the news letter, Martin says if the financial markets drop ( as they have) it can have a knock on effect with house prices, but if its personal and for the long term go ahead.

Trillionski

There are too many factors to consider and not ones that I am qualified to talk about.
I'd hazard a guess and say who knows how long this will take to sort out.
Until the evidence states otherwise - there's no change. 

Maybe in some time you may get some indication in the form of less houses being sold/bought but essentially it's a waiting game.
For people like me yes it could be in my best interests to hope for a housing crash but at what cost?
An unstable economy?
Jobs at risk?
Greater criteria/checks on mortgages?

There's way too much uncertainty to even try to predict whats going to happen.

I'm waiting because I have no choice and I'm 3-6 months behind to being able to actually start placing offers on houses.

FtbDreaming

Im thinking the current crisis will definitely slow down the market. If people lose work they'll have less money. If they're on lockdown nobody will be viewing houses. All the people involved in house buying and selling process from the banks to the solicitors will have their home commitments and possibly bereavements slowing down the whole process. Its not going to be easy few months ahead

Davesnave

It won't be pretty. Those who were caught up trying to sell in the Crash of 2008, or in earlier financial and social catastrophes will have some idea, but others who've never experienced anything like this will find the scale of the problem hard to comprehend for a while.

This is global and the effects are bound to be severe, but as in every human situation, there will be those working to put things right after the first economic tsunamis strike. Nobody knows exactly where this is going, only that there will be some who prosper, some who suffer and many in between who'll muddle-through. I hope to be in the latter group, just like last time!

PasturesNew

I am a househunter... I keep a daily count of the properties I can afford, originally intended so I could spot the alleged "bounce" when more would appear.  So far there has been no weekly difference in the number of properties coming to market in my area in my price bracket... but things weren't looking too good to start with, to be honest.  

Originally they said people were waiting for Brexit, now it's this thing. 

Prices will remain closer to their "worth" value, than the daft prices some were coming on at.  Prices will be more realistic.  For sellers this is good as it means you're more able to buy your next place at its "worth" price, rather than being presented with crazy prices. 

Late last year I saw many go onto the market at £350k that were, quite simply, never going to be worth £350k.  They have ended up at £300k before selling, which is what they were worth in the first place.  Going forward, they will go onto the market at £300k.  Everybody wins as the seller no longer has to wait months for that buyer - and the buyer no longer has to wait months for it to come down.  

Soot2006

I think we'll see a slowdown in the housing market as people will have less money and will be more cautious. Equally, the psychology of feeling "safe"  at home cannot be underestimated. This means we might see a differential effect on different types of housing. E.g. We moved by choice last summer (which may turn out to be a market peak!) but now I am just glad that the family is in a nice location that we like. If we have to "isolate", then we're in the best place we could be. I have spoken to others that are still completing purchases and most feel the same and feel that some loss in property value is a small price to pay for safety.

So my personal crystal ball prediction: more people staying put where they are, but when houses do sell they probably won't lose too much value. Finance vs Psychology!

Of course, this is now test #1 to see if mortgage lending has been as sensible as promised over the last 10 years, or (as I suspect) we've gone back to old bad habits of overexposing ourselves to risk.

SameOldRoundabout

The market certainly seems to be slower than I’d expect for March around here. It hasn’t really picked up since Christmas, end of last year I was getting 1-2 alerts a day of properties fitting my criteria on RM, now it’s maybe 1-2 a week. I would certainly think this will effect the prices, it’s a question of how badly and for how long.

We are completing our purchase next week and I worry we’ll have bought at the crest of a big recession again, but I don’t worry that much as it’s a long term purchase for us and we won’t need to worry about selling price for at least a decade. It’s also cheaper than it would be anyway as it’s a big project. Life goes on.  

CreditCardChris

MovingForwards said:

People are still buying, properties are still being listed for sale on a daily basis, I've not seen any difference in prices where I'm buying.

That's because nothing is capable of bringing down house prices in the long run. Weather it's a world war, a virus outbreak or incredible prosperity. People always need a home and the population will increase forever. Homes will always be in demand in that demand will only grow exponentially, literally as long as the human race exists. 

Even when there is a mini collapse like in 2008 it takes just a few years for the market to bounce back. Bottom line is the housing market is the safest investment known to man.