House prices dropping?

NDTNewbie

Hi I’m in the process of buying a house. We had an offer of 240k accepted and it was on the market for 255k. We are putting 20% down also, so a mortgage or 192k is in place. 

With everything that is happening the mortgage company cannot complete a valuation. I’m getting worried that they will value the property for less than what we agreed to buy it for and subsequently loose the property. 

Has anyone seen a drop in the market?

ACG

Loads of posts on this. 
No evidence of house prices dropping yet because very few are completing and there are very few new offers due to the lockdown, you would need to wait for a month or 2 after the lockdown to see what is happening.

[Deleted User]

Prices are falling hard, 10% or more. It may be temporary, hopefully it will be permanent. Given that a lot of people lost their jobs and it looks like we have a no-deal brexit crash coming up at the end of the year too there is a good chance 10% is just the start.

So it's not wise to get into a position where you will be in negative equity and the banks knows that. They are waiting to see what happens so they don't lend you too much, obviously thinking that prices might fall more than the 20% you are putting down.

The vendor might accept a lower valuation and sell it to you anyway. It's not like they can just get another buyer who will pay more, everyone will be looking at that lower market value.

dimbo61

 "No deal Brexit crash " 
Are trading partners will need the UK as much as we need them.
Hard times ahead for most working or unemployed people but why a 10% crash in the housing market ?

RelievedSheff

[DELETED USER] said:

Prices are falling hard, 10% or more. It may be temporary, hopefully it will be permanent. Given that a lot of people lost their jobs and it looks like we have a no-deal brexit crash coming up at the end of the year too there is a good chance 10% is just the start.

So it's not wise to get into a position where you will be in negative equity and the banks knows that. They are waiting to see what happens so they don't lend you too much, obviously thinking that prices might fall more than the 20% you are putting down.

The vendor might accept a lower valuation and sell it to you anyway. It's not like they can just get another buyer who will pay more, everyone will be looking at that lower market value.

Could you post this evidence of "prices falling hard" please?

I'm struggling to find any evidence of prices falling at all!

dunstonh

House prices are not dropping as there is virtually no housing market.   It has effectively been frozen.

As usual with house prices, you get wild stories from people making predictions.    Trade articles expect house prices to fall around 3% in 2020 but rise 7% in 2021.     Some have predicted that houses in rural areas or with land will actually have an immediate increase in value due to increased demand from those without gardens/land who have got fed up with the property they are in.

One thing you should learn about house price discussions.  Nobody knows and everyone is speculating.   Some will give reasonable opinions but others will just troll you and throw silly figures at it.     

However, as is stands, house prices are not falling.  They are not rising either.

kazwookie

[DELETED USER] said:

Prices are falling hard, 10% or more. It may be temporary, hopefully it will be permanent. Given that a lot of people lost their jobs and it looks like we have a no-deal brexit crash coming up at the end of the year too there is a good chance 10% is just the start.

Can you give me the link to prove 'price are falling hard'

As I think you are talking a load of BS

NDTNewbie

@dunstonh
The house we are looking to buy is in a rural village with a good size garden. I’m hoping that the valuation team will look at this when they can eventually complete one. 

[Deleted User]

[DELETED USER] said:

Prices are falling hard, 10% or more. It may be temporary, hopefully it will be permanent. Given that a lot of people lost their jobs and it looks like we have a no-deal brexit crash coming up at the end of the year too there is a good chance 10% is just the start.

So it's not wise to get into a position where you will be in negative equity and the banks knows that. They are waiting to see what happens so they don't lend you too much, obviously thinking that prices might fall more than the 20% you are putting down.

The vendor might accept a lower valuation and sell it to you anyway. It's not like they can just get another buyer who will pay more, everyone will be looking at that lower market value.

Does it follow that you hope that people have permanently lost their jobs because that is what is bringing the house prices crashing down? Are the people who would step in and benefit from the lower house prices immune from job loss and the consequences of a no deal Brexit?

ACG

There is no evidence house prices are falling, increasing or even remaining stable. 
I think due to the wider implications everyone needs to just hope it picked up where it left, large increases is good for home owners but not first time buyers, house price drops generally mean there are issues in the wider economy and large scale job losses. I think if that starts to happen then you may notice a drop in house prices but everything seems to be holding. 

Thrugelmir

With some 373,000 property transactions on hold. The roulette wheel is still spinning.