Finally seeing house prices drop?

theartfullodger

With Covid and Bre##it to be paid for (HUGE sums) and Ukraine then Putin turning the gas off there's going to be a painful recession.

Tighten your belts folks!

jonnydeppiwish!

theartfullodger said:

With Covid and Bre##it to be paid for (HUGE sums) and Ukraine then Putin turning the gas off there's going to be a painful recession.

Tighten your belts folks!

I agree - but for those who took sensible decisions and didn’t overstretch themselves, or who downsized during this period, it will probably be business as usual.

Again, it’ll be those in poor financial situations (both self inflicted and those were circumstances change) who will suffer the most. The big companies will still make their money!

propertyhunter

annabanana82 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. 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...

What else do you think we should stop doing if we "are on the precipice of war"?

I'm buying a house myself right now, don't get me wrong. I'm just saying I'm surprised, not inferring anything else.

My partner and I are too cautious, and we're going into this purchase with enough cash reserves should the economic fallout of war be quite severe. This is important because the economic costs of the war are already being seen at the pumps, and there are suggestions that inflation will peak at 10%, rather than 7%, this year. Wages aren't going up 10% to match that. Well mine certainly aren't. Together, our mortgage amount is 20% of our outgoings, so we count ourselves to be extremely lucky. 

housebuyer143

I suppose it depends what is in your area. 4 bed detached houses are few and far between and they are going on the market for more than 3 months ago, at least £50k more (which is crazy I might add). These however are not shifting and they are eventually coming down or being withdrawn.
Lots more houses going on is what I am seeing and only the well priced ones are moving fast. The rest just sit there which is different to last year.

HotPantsCruiser

MobileSaver said:

TonyTeacake said:

the effects of this are yet to be seen which could be catastrophic for many economies around the world.

Yes that is a possibility. So if it's catastrophic for the UK economy do you think that will make it easier or harder for most people to buy a house in the UK?

TonyTeacake said:

We all know covid ... has accelerated the market but it definitely can't be sustainable.

Which is odd because Crashy and the HPC crowd were gleefully celebrating the Covid pandemic initially as they were convinced this would lead to cheap houses for everyone...

Thumbs_Up said:

There is one fundamental word that has not been mention that would ultimately decide if house prices will drop in value and that is recession!

Yes that would probably affect house prices so same question to you: do you think a recession will make it easier or harder for most people to buy a house in the UK?

HotPantsCruiser said:

MobileSaver said:

HotPantsCruiser said:

I think a lot of people were caught out by the WFH mania, many will have lost promotions even jobs by moving too far from the office, people won`t be in a hurry to repeat the mistake IMO.

What percentage of the hundreds of thousands of people who moved to rural homes last year unexpectedly lost promotions or jobs by WFH?

WFH isn`t a comparable scenario!

You were the one who brought up "WFH mania" and the apparent "many" problems it caused but you seem reluctant to substantiate the claim or maybe you just missed the question?

What percentage of the hundreds of thousands of people who moved to rural homes last year unexpectedly lost promotions or jobs by WFH?

The response to Covid (money printing basically) plus supply chain issues due to lockdowns has led to the inflationary situation we have now that is going to push mortgage rates up, this is exacerbated by the horrific mess that is unfolding in Ukraine. If it is hard for most people in the UK to buy a house it will be VERY hard for a lot of people to sell a house in the UK.

MobileSaver

HotPantsCruiser said:

If it is hard for most people in the UK to buy a house it will be VERY hard for a lot of people to sell a house in the UK.

Agreed, it will be harder for both, the difference being that every month that goes by the homeowner is still paying off their own mortgage while the renter is still paying off their landlord's mortgage. Given the choice I know which group I'd rather be in...

HotPantsCruiser

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…

I have heard of a few people lately rushing into purchases before mortgage rates rise, I think some or even all of them might get "down-valued" though.

jimbog

propertyhunter said:

annabanana82 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. 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...

What else do you think we should stop doing if we "are on the precipice of war"?

I'm buying a house myself right now, don't get me wrong. I'm just saying I'm surprised, not inferring anything else.

Are you likewise surprised by your own decision to still move? 

MobileSaver

HotPantsCruiser said:

I have heard of a few people lately rushing into purchases before mortgage rates rise,

I'm not sure how you rush into something that typically takes three to six months to do but, regardless, what would you suggest people do instead? Do you think they should deliberately hold off on completing their purchase until after mortgage rates have already risen?!?!

propertyhunter

jimbog said:

propertyhunter said:

annabanana82 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. 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...

What else do you think we should stop doing if we "are on the precipice of war"?

I'm buying a house myself right now, don't get me wrong. I'm just saying I'm surprised, not inferring anything else.

Are you likewise surprised by your own decision to still move? 

I am actually, because I'm naturally risk averse. But enough people are telling me it should be fine so I'm reassured by that.