Is it reasonable for us to drop our asking price given current climate?

vitaweat

abanksee said:

vitaweat said:

My $0.02 is that there is likely to be a big inflationary burst due to supply chains being cut by CV19 while governments are pumping money into the system.  That would mean house prices (and the price of bacon) would rise substantially but incomes would too.  

If I'm right it would be a good time to have a fixed rate mortgage but then there's nothing harder to predict than the future.  Time will tell as always.
 
FWIW about 90% of my mortgage is on a fixed rate and 10% variable, all is 100% offsetable by my savings account.  I'm on an LTV of perhaps 60%, or was before Covid.  Goodness only knows what my house is worth now.

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

abanksee

vitaweat said:

abanksee said:

vitaweat said:

My $0.02 is that there is likely to be a big inflationary burst due to supply chains being cut by CV19 while governments are pumping money into the system.  That would mean house prices (and the price of bacon) would rise substantially but incomes would too.  

If I'm right it would be a good time to have a fixed rate mortgage but then there's nothing harder to predict than the future.  Time will tell as always.
 
FWIW about 90% of my mortgage is on a fixed rate and 10% variable, all is 100% offsetable by my savings account.  I'm on an LTV of perhaps 60%, or was before Covid.  Goodness only knows what my house is worth now.

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

It's simple economics though. Less jobs, less money = lower house prices.

It wont last for years but there is going to be downward pressure. Absolutely mental to suggest they'll stay the same or rise as the odd person on here thinks.

vitaweat

abanksee said:

vitaweat said:

abanksee said:

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

It's simple economics though. Less jobs, less money = lower house prices.

It wont last for years but there is going to be downward pressure. Absolutely mental to suggest they'll stay the same or rise as the odd person on here thinks.

But there's more money not less.  And fewer goods to boot.

More money + fewer goods = higher prices.

I agree that house prices adjusted for inflation might well fall but in cash money terms I strongly suspect they will rise and fast.

abanksee

vitaweat said:

abanksee said:

vitaweat said:

abanksee said:

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

It's simple economics though. Less jobs, less money = lower house prices.

It wont last for years but there is going to be downward pressure. Absolutely mental to suggest they'll stay the same or rise as the odd person on here thinks.

But there's more money not less.  And fewer goods to boot.

More money + fewer goods = higher prices.

I agree that house prices adjusted for inflation might well fall but in cash money terms I strongly suspect they will rise and fast.

More money for who? Certainly wont be the general public with less jobs, pay freezes and higher income tax after this.

Marvel1

scrola said:

Splatfoot said:

Splatfoot said:

Those posters that are obsessed with prices going down, why did you not buy in the months/years after 2008? When there was actually a house price reduction? I'd be interested to know. 

Anyone?

Well I did. Neighbour paid £405k in late 2007 we paid £300k in late 2008, house opposite went for £285 at end of the year. All identical new builds. People are right though as they were all valued the same when we sold last year, so it didn't make much difference over 10 years........except we we didn't pay a mortgage on £105k and had it a equity for our new house.

The opposite, the seller of my house bought for £36K in 2006 and I bought it for £65,500 a year later - nothing was updated.

vitaweat

abanksee said:

vitaweat said:

abanksee said:

vitaweat said:

abanksee said:

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

It's simple economics though. Less jobs, less money = lower house prices.

It wont last for years but there is going to be downward pressure. Absolutely mental to suggest they'll stay the same or rise as the odd person on here thinks.

But there's more money not less.  And fewer goods to boot.

More money + fewer goods = higher prices.

I agree that house prices adjusted for inflation might well fall but in cash money terms I strongly suspect they will rise and fast.

More money for who? Certainly wont be the general public with less jobs, pay freezes and higher income tax after this.

The Government has just pumped hundreds of billions of pounds into the economy which has been given to consumers directly!!!

abanksee

vitaweat said:

abanksee said:

vitaweat said:

abanksee said:

vitaweat said:

abanksee said:

House prices are not going up anytime soon

How do you know?  If you know what future asset prices are, why are you posting on here?

It's simple economics though. Less jobs, less money = lower house prices.

It wont last for years but there is going to be downward pressure. Absolutely mental to suggest they'll stay the same or rise as the odd person on here thinks.

But there's more money not less.  And fewer goods to boot.

More money + fewer goods = higher prices.

I agree that house prices adjusted for inflation might well fall but in cash money terms I strongly suspect they will rise and fast.

More money for who? Certainly wont be the general public with less jobs, pay freezes and higher income tax after this.

The Government has just pumped hundreds of billions of pounds into the economy which has been given to consumers directly!!!

And will be paid back for years to come. Redundancies will rise hugely soon as companies need to pay 40% of the furlough if they cant get back to work.

Deluded if you dont see a struggle ahead.

blue_max_3

vitaweat said:

The Government has just pumped hundreds of billions of pounds into the economy which has been given to consumers directly!!!

Certainly not for everyone. And the cracks are starting to show now people are being encouraged back to work. Many who have decided they don't want to are being given an ultimatum by employers, come to work or face removal of the furlough and go on statutory sick pay. They can stay at home and shield, but the employer doesn't have to pay them. The tide is turning.

numbercruncher8

Splatfoot said:

scrola said:

Splatfoot said:

Splatfoot said:

Those posters that are obsessed with prices going down, why did you not buy in the months/years after 2008? When there was actually a house price reduction? I'd be interested to know. 

Anyone?

You did well. And better than spending the following 10 years in renting. My question is trying to gauge when the people who go on about the 'New crash' will ever buy! I had a look at our local market and a house sold in Oct 2008, during the crash, went for £335,000. And then sold again in 2019 for £450,000.  It doesn't really stay 'low' for long and the longer they wait, the more boats they miss. 

Generalising much? There are places where prices have not only just got back to the prices seen pre-GFC.
Places in Kent such as Maidstone have been flat in the last decade. As are places in the outskirts of Leeds. On the other hand there are many places that have seen massive price rises.

I sold out in 2018.... since then the price of a comparable property has gone down by £25,000 and that was on the market and unsold before Covid. I wouldn't be surprised if this price drops a bit further. Prices in the area look weak and there are reductions from either better properties in the same area, or smaller properties in better areas. 

I would think that in pure nominal terms by the end of 2020 I may be around £50,000 better off selling back then rather than now. Prices would need to rise over 10% to be over the amount I received. Not impossible, but very unlikely over the near term.

Of course, I've had to rent and this is an additional cost. But I also received a large amount of money (original deposit plus equity gains), that I wouldn't have had if I had still owned. My rental cost is less than what the mortgage was, and the interest payments accrued have more than covered that. 

The intangible costs are that there is no security of tenure, but rents have not gone up here, have seen similar properties for the same or less. Timing a re-entry into the market is difficult, but my opinion is that many things still look overpriced. Like equities there is no real scientific way to value them, and as such prices are very likely to over-shoot and under-shoot due to the human emotion of exuberance and fear. 

So selling has done pretty well for me, and currently I'm better off as a result currently. The risk that position could reverse and I could be priced out of the market if prices rise sharply. But it just looked unlikely at the time of sale on a pure wage multiple, it looks even more unlikely now I have to say. As I said to someone else, the risk:reward is favourable for me.

What I just can't get is there are house price doom-mongers who make their point and pretend their experience reflects the case for everyone in the market. That is moronic as far as I can see, but the people that put across the counter argument are doing exactly the same thing.

I could start claiming that renting is better than owning because that is what I am seeing in my area, but that is stupid and depends on many other factors. Yet there are people on here happy to make blanket judgements based on their own experience. 

rav1962

This happened me recently threatening to pull out near completion  if I didn't agree to new price & their demands.     I said would just take off the market & property I'm buying not reduced.
Now they have retracted everything they demanded and are panicking if I don't sell to them.!! 
All circumstances are different & depends how much you want the property...