Finally seeing house prices drop?

propertyhunter

I'm surprised people are still looking to move and the market is buoyant when we could be on the precipice of war. However, stranger things have happened to house prices in the past 2 years when we've faced what we thought were existential threats to humankind at the time...

Giggidy

Twins said:

Hello all!

I’m curious, are you seeing a slight slowing down in the housing market? In the past couple of weeks I’ve noticed more and more properties being reduced in price.
Are prices finally slowing down? 

Wondering if it’s just my area or is it elsewhere too?

My broker also mentioned he’s seeing more and more lower valuations coming in…

Definitely noticed a slight shift where we're looking (SE) for the last few weeks, from weekend open days and being under offer by Monday to being on the market for at least 3 weeks. Quite a few reductions, biggest one so far being £80k and still not sold 2 weeks later. Of course there are still quite a few selling very quickly and having at least 5 offers bidding over asking (usually the one's we like of course) but then some come back on to the market again few weeks later with a reduction. Slightly nervous considering a house move during this uncertain time, but we have waited through Brexit and Covid, and who know's what else will happen next 

steve866

propertyhunter said:

I'm surprised people are still looking to move and the market is buoyant when we could be on the precipice of war. However, stranger things have happened to house prices in the past 2 years when we've faced what we thought were existential threats to humankind at the time...

There’s always something (brexit, general election, covid) you could wait years for the right time. 

Anecdotally in my London suburb I’ve seen such little stock come on that things are still getting snapped up quick  

Noneforit999

I think the ones that are being reduced were severely overpriced in the first place.

3 Bed Semis are going SSTC around here for £320k-£370k ish but I saw one recently list for £390k-£410k. Nothing special about it, 10-15 year old bog standard 3 bed semi with a drive and small garage. 

Two weeks later is was reduced to £380k which is probably still top end so even if they get an offer, its likely to be down valued.

The ones that quickly go SSTC round here are ones that have the fewest compromises. With any property there are likely to be compromises but if you are trying to flog a 100 year old house that needs a new kitchen/bathroom, is on a main road and have no parking.....don't be surprised if its not snapped up as quickly as a 5 year old house with off road parking and a garage.

Atomix

One of our friends approached an estate agent last week, house didn't even go on the market, (3 bed semi, nothing special) they had an open day last saturday (with potential buyers on their books) over a dozen people viewed, and seven offers. The point being, not enough houses on the market vs huge demand...

Thrugelmir

propertyhunter said:

I'm surprised people are still looking to move and the market is buoyant when we could be on the precipice of war. 

Are we?  Nothing to suggest this view.  

MobileSaver

propertyhunter said:

I'm surprised people are still looking to move and the market is buoyant when we could be on the precipice of war.

Even if we were "on the precipice of war" wouldn't that encourage a lot of people to want to move from urban to more rural areas if they could thus keeping the market buoyant?

Fundamentally, the property market is based on supply and demand and while there will always be short-term spikes and troughs there won't be a general long-term downward trend until the supply side of the equation is addressed... and I can't see that happening any time soon...

Ramouth

MobileSaver said:

Fundamentally, the property market is based on supply and demand and while there will always be short-term spikes and troughs there won't be a general long-term downward trend until the supply side of the equation is addressed... and I can't see that happening any time soon...

While I totally agree this should be the case, and over a long enough time period it is likely to be true, shorter term the property market can be massively effected by sentiment.  If the general population believe that prices are likely to fall in the foreseeable future they will hold off buying, reducing demand in the shot term, and therefore putting downward pressure on prices.

This wouldn’t stop me buying now though - nobody knows what the market will do and I would prefer to pay more now and get a good 5 year fix on a low interest rate than pay rent while waiting for houses to be 10% cheaper but pay 2% more on the mortgage (which from my very rough calc comes out about the same).

Thumbs_Up

Thrugelmir said:

propertyhunter said:

I'm surprised people are still looking to move and the market is buoyant when we could be on the precipice of war. 

Are we?  Nothing to suggest this view.  

The shelling of a nuclear power plant I think this quote is applicable. “Hope for the best, prepare for the worst.” 

MobileSaver

Ramouth said:

MobileSaver said:

Fundamentally, the property market is based on supply and demand and while there will always be short-term spikes and troughs there won't be a general long-term downward trend until the supply side of the equation is addressed... and I can't see that happening any time soon...

If the general population believe that prices are likely to fall in the foreseeable future they will hold off buying, reducing demand in the shot term, and therefore putting downward pressure on prices.

I genuinely do not believe that many people will hold of buying because they think "prices are likely to fall in the foreseeable future".

Perhaps it would be different if houses were like say iPhones where there was practically unlimited supply and you could buy the same thing from pretty much anywhere.

Houses people want though are in short supply and people don't just move house on a whim; they have very specific needs such as a new location, bigger size or better environment - only the HPC zealots will sacrifice all those things for ever and a day just to try and get something cheaper.