House prices dropping?

PixelPound

RelievedSheff said:

[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!

He's a long term HPC, take this post from 2014 

[DELETED USER] said:
The crash is coming. Too many people stretching to buy with money they can't afford to borrow. The Bank of England can't ignore it forever and the government is completely inept, so eventually it will come to a head and crash.

Same call outs from Chicken Little each time

EverythingIWant

MoJo talking bull. Last I heard we were still in a housing shortage crisis. Prices are not going to crash and if they do, a lot of people will be in far more trouble than they are now so I wouldn’t wish for it. 

Bossypants

EverythingIWant said:

MoJo talking bull. Last I heard we were still in a housing shortage crisis. Prices are not going to crash and if they do, a lot of people will be in far more trouble than they are now so I wouldn’t wish for it. 

The second part of your post is why I don't understand the HPC crowd. Prices don't crash in a vacuum. If they do, it'll be because people can no longer afford what they used to, because they have less money overall than used to, and as soon as that changes, prices will go back up, because the supply and demand aspect hasn't changed. A price crash signals nothing but misery for everyone.

blue_max_3

Bossypants said:

EverythingIWant said:

MoJo talking bull. Last I heard we were still in a housing shortage crisis. Prices are not going to crash and if they do, a lot of people will be in far more trouble than they are now so I wouldn’t wish for it. 

The second part of your post is why I don't understand the HPC crowd. Prices don't crash in a vacuum. If they do, it'll be because people can no longer afford what they used to, because they have less money overall than used to, and as soon as that changes, prices will go back up, because the supply and demand aspect hasn't changed. A price crash signals nothing but misery for everyone.

So if they doubled, it would be a good thing?

Getting_greyer

Well if they doubled that means people can afford to buy them at double which means a big lift in income.

Getting_greyer

The biggest problem is all about the deposit which is absolutely nails if most of your income goes on rent. But I'm not sure this is what the thread as about.

Bossypants

blue_max_3 said:

Bossypants said:

EverythingIWant said:

MoJo talking bull. Last I heard we were still in a housing shortage crisis. Prices are not going to crash and if they do, a lot of people will be in far more trouble than they are now so I wouldn’t wish for it. 

The second part of your post is why I don't understand the HPC crowd. Prices don't crash in a vacuum. If they do, it'll be because people can no longer afford what they used to, because they have less money overall than used to, and as soon as that changes, prices will go back up, because the supply and demand aspect hasn't changed. A price crash signals nothing but misery for everyone.

So if they doubled, it would be a good thing?

As Getting_grayer says, if I could sell my house for double tomorrow what it's worth today, with no change to supply or demand levels, that would mean some kind of economic lift had taken place. Depending on the nature of it (i.e. whether sustainable or not), that could be either good or bad. What people need to understand is that house prices taken on their own don't mean very much, it's what they represent which matters. I think the best we can hope for as far as house prices go from this virus is that more employers and employees will see that working from home is full time is actually completely doable, and then maybe we'll see less of a concentration of demand in the South East, which might in time at least bring nationwide prices into some kind of equilibrium. It'll take a good while for the effects of that to really be felt, I should think. 

blue_max_3

Getting_greyer said:

Well if they doubled that means people can afford to buy them at double which means a big lift in income.

It probably means that some people can afford them. Potentially a much smaller portion of society. Huge parts of central London are owned by overseas owners because they can afford to pay the most.

md258

Going back to the OP's question- I think you've just got to sit tight and wait for the valuation.

If the valuation agrees with what you're paying, then all is fine.

If the valuation comes back as less, then you could
* Negotiate with the buyer to meet the valuation (no one else will be able to pay more with a mortgage)
* Top it up with a larger deposit (if you love it that much and can afford to)
* Walk away (if prices are falling then you should be able to get something similar for less)

I'm not sure that the valuation is really the issue- are you worried you've paid too much. I personally don't believe prices will fall much if at all but I appreciate that many people do

graphs

The delusion in this thread is astounding!