Finally seeing house prices drop?

lookstraightahead

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more. Or buyers who got involved in bidding wars and scraped together the difference in lender valuation and vendor expectations.

lookstraightahead

propertyhunter said:

I've said it before - every time I complete on a house, there's a correction soon after because of my dumb luck. So, with the plan for exchange and completion before the end of this month, don't say I didn't warn you! 

Some people think there will never be a correction, for the first time ever.

getmore4less

lookstraightahead said:

propertyhunter said:

I've said it before - every time I complete on a house, there's a correction soon after because of my dumb luck. So, with the plan for exchange and completion before the end of this month, don't say I didn't warn you! 

Some people think there will never be a correction, for the first time ever.

Depends what you mean by correction?

When you look at the inflated and actual prices you get two different picture
https://www.housepricecrash.co.uk/indices-nationwide-national/
https://www.housepricecrash.co.uk/indices-nationwide-national-inflation/

The 1989 correction saw big inflation adjusted drops but on the ground it flatlined(the correction was prices stopped going up). 

The 2007 correction saw a similar inflation adjusted and around 20% in on the ground prices.

That 20% happened over 2 years before the next adjustment was back to climbing prices

We are yet to climb back to the previous 2007 peak inflation adjusted.

There was also a significant correction in 2016 but that was just a slow down of rate of on the ground increase.

Another drop of 20% would only take us back to levels 2 years ago

The reality is this bubble only started because of covid .

The most common correction is prices stop going up as fast or stop.

Agree the stall may have started and the YOY price increases may start to drop back from the current 10%+ levels
 

MobileSaver

lookstraightahead said:

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more.

No, the people with the biggest regrets are the ones who had a choice and chose to pay off their landlord's mortgage instead of their own for the last fourteen years.

newsgroupmonkey_

MobileSaver said:

lookstraightahead said:

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more.

No, the people with the biggest regrets are the ones who had a choice and chose to pay off their landlord's mortgage instead of their own for the last fourteen years.

Definitely this.

But bear in mind, all those that rent often don't do through choice....

TXC

lookstraightahead said:

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more. Or buyers who got involved in bidding wars and scraped together the difference in lender valuation and vendor expectations.

I agree with this, I just don't know why anybody would knowingly plug that gap from their own pockets, in the event of any correction or fall these will be the first people to feel it.

MobileSaver

TXC said:

lookstraightahead said:

Or buyers who got involved in bidding wars and scraped together the difference in lender valuation and vendor expectations.

I agree with this, I just don't know why anybody would knowingly plug that gap from their own pockets, in the event of any correction or fall these will be the first people to feel it.

What's the alternative? Carry on paying £1000 a month to pay off their landlord's mortgage instead?

lookstraightahead

MobileSaver said:

lookstraightahead said:

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more.

No, the people with the biggest regrets are the ones who had a choice and chose to pay off their landlord's mortgage instead of their own for the last fourteen years.

Personally whether I pay a landlord for a house or whether I keep the banking sector in bonuses is neither here nor there to me. But I suppose it's whatever you feel more comfortable with.

I've paid the salaries of a fair few banks in credit repayments because of negative equity and other silly decisions I will admit where I struggled to pay extortionate interest rates and buying too young and then not being able to sell.

I nearly have my deeds now though. Earned money, not made a penny on house buying. 

lookstraightahead

MobileSaver said:

TXC said:

lookstraightahead said:

Or buyers who got involved in bidding wars and scraped together the difference in lender valuation and vendor expectations.

I agree with this, I just don't know why anybody would knowingly plug that gap from their own pockets, in the event of any correction or fall these will be the first people to feel it.

What's the alternative? Carry on paying £1000 a month to pay off their landlord's mortgage instead?

Depends what that extra money would have done. Bought a car maybe instead of having to take out a loan. Getting into debt because you've had to scrape together another £30k somehow?

MobileSaver

lookstraightahead said:

MobileSaver said:

lookstraightahead said:

I think the people with the biggest regrets will be the vendors who are still holding on to the roots of their 'immortal' money tree house, trying to get even more.

No, the people with the biggest regrets are the ones who had a choice and chose to pay off their landlord's mortgage instead of their own for the last fourteen years.

Personally whether I pay a landlord for a house or whether I keep the banking sector in bonuses is neither here nor there to me. But I suppose it's whatever you feel more comfortable with.

You are very much in the minority; for most people, given the choice, it's a bit of a no-brainer to decide between paying your own mortgage for a fixed period of time and eventually having a substantial asset or alternatively paying probably even more every month to pay your landlord's mortgage for the rest of your life.

And that's without taking into account all the other benefits of home-ownership such as you deciding how long you stay in one place rather than your landlord, you deciding if you have pets, you deciding if you can knock out an internal wall or convert the garage into a habitable room etc. For most people there really is no comparison.

Of course for some people choosing to rent is absolutely the right thing to do but typically this is the younger generation still deciding what they want to do in life and/or for those who need relatively short-term accommodation - it's rarely a sensible long-term solution.