To think that big house price falls finally on the way?

[qwertyflirty]

After years or price rises, in my area (edge of London), I'm finally seeing price falls of around 15% from peak.

Lots of evidence in recent months of house price falls starting and picking up in London/South East, and usually once they start here, price falls spread elsewhere.

House prices are down on average 17K since July 2017 in London. "The average price of a home for the capital as a whole was £471,986, down from a peak of £488,247 last July."

There is little the government can do to mitigate it this time round, as interest rates are already at record lows. All signs are currently pointing to the top of the market having been reached and prices about to crash.

Such as:

www.theguardian.com/business/2018/apr/18/london-house-prices-fall-average-uk

www.thisismoney.co.uk/money/mortgageshome/article-5733321/Beware-red-danger-signs-house-prices-Young-buyers-borrow-record-sums.html

www.theguardian.com/money/2018/may/12/house-prices-are-on-the-slide-where-will-they-go-now

www.independent.co.uk/news/business/news/house-prices-fall-housing-market-rics-survey-april-a8343561.html

www.propertyweek.com/finance/house-price-falls-continue-in-london-and-spread-to-south-west/5096455.article

www.theguardian.com/commentisfree/2018/may/10/celebrate-house-prices-falling-britain-property-values

I don’t know what the OP is basing her opinion on but it’s not fact or experience

Hope.

All it needs is a single person in your road who HAS to sell for less, and wham bam! your house is worth less too. You don't have to do anything. And nothing you can do can prevent it.

You are forgetting that the one house which undersold could have been a shack surrounded by extensions and loft conversions which sell for what they are worth - and wham bam the street value has gone back up again.

Around here a house will sell for what someone is prepared to pay - a beautifully decorated, extended, modern, landscaped home will sell regardless of the price.

don’t know what the OP is basing her opinion on but it’s not fact or experience

[/End of thread]

HateIsNotGood - I quoted the headline, you quoted one isolated snippet.

It's not rocket science as to which is likely to give a more reasonable indication of the content of the whole article.

I don't know if you think posting things like "Frankly I find you amusing - any counter to view you bat away; I come back and look thread because I find it funny, well you funny anyway. Keep up the good work - let's see if you can do it on a different topic. We'll leave Brexit out but I did see that in your great 'wisdom' "it's not going to happen". Hmm, shall we try - Buses - what's your view on wheelchair users vs prams for eg?"

makes you look witty.

It just makes you look desparate to discuss anything other than house prices falling.

Why would you be so scared of discussing house prices, I wonder...?

RidingWindhorses - you can see what I'm posting my opinions on, because I helpfully include links.

Things like newspaper articles, rightmove, zoopla, house price indices.

What would you rather I base my opinions on? A feeling in my waters...?

So RidingWindhorses - if you can refute my opinions with actual facts, rather than personal attacks, let's see you do that.

Please post actual evidence of rising prices in London and the SE below:

reetgood - obviously, I'm talking about comparing like with like.

No-one is suggesting that if a detached sells for 100K less than it did last year, that a terrace also will.

But the terrace will probably sell for proportionally less if all properties in an area are going down.

In the example I gave above of Lewisham, it was a block of identical flats.

If 99 of them aren't on the market, the 1 that is will set the value for all 100. Even if the others have no intention of selling.

A4710Rider - according to your link, pay growth is still lower than inflation - 2.6% rather than 2.7%.

As long as we are all earning less than the year before in real terms I don't see where you think there is room for future house price growth?

TheFatkinsDiet - so true.

"I remember a comedian saying that the London property market has, for many years now, been based on people pretending that shit areas are nice! There are some very, very expensive flats for sale in areas which have never been nice or even pleasant."

I am a native Londoner, and I find myself about people paying 600 or 700K for a flat in an utter shithole where someone set up a coffee bar. It's still a shithole, just a shithole with gang violence, just with a coffee bar.

If 99 of them aren't on the market, the 1 that is will set the value for all 100. Even if the others have no intention of selling.

one will sell "cheap" but this doesn't stop the others asking 10k more next week and a new buyer who wants to live there being happy to pay for it.

or the new coffee bar opening up down the road next month and 3 people suddenly thinking the area is better thsn it used to be so they all want the flat and it ends up going above asking price in a bidding war.

If 99 of them aren't on the market, the 1 that is will set the value for all 100. Even if the others have no intention of selling.

Wrong. If the flat that sold is a shit hole it may go for less. A flat which has been modernised will sell for it's own value, not the value of the s/hole.

So your thread title ".....big house price fall is on the way" No, I don't think so.

A flat which has been modernised will sell for it's own value, not the value of the s/hole
What are curious idea ....you seem to think that a property has an inherent value which can be separated from the area in which it is situated

I'm always shocked to read about the house prices in London and realise how naive I am! It's different where I live in South Wales, I've had some strange looks from people when I tell them you can buy a really nice 3 bed house for £50,000 but it's true. My 3 bed terraced with double garage was only £68,000. I'm no longer surprised that London is so expensive to live in.

LifeBeginsAtGin - "If the flat that sold is a shit hole it may go for less. A flat which has been modernised will sell for it's own value, not the value of the s/hole."

I was giving the example of a block of flats in which all are identical, 2-bed flats.

It's well known that modernising flats adds little to value - buyers aren't stupid enough to think a shiny new kitchen from IKEA that cost 3K has just magically added 50K to the value of the flat. They prefer the 'shithole' for 50K less which they can then buy the kitchen of their choice for.

You're really plumbing the depths here, Gin.

thats just factually incorrect though.. a lot of people are more than willing to pay over the odds for an already "done" house rather than make the effort themselves. Easiest place to see that is the main reason new build premiums are so high

www.housesimple.com/blog/will-a-new-kitchen-or-bathroom-add-value-to-my-home

Here you go - it advises that you'll get back about half the cost of what you spend if you upgrade your property with a new bathroom/kitchen - eg if you spend 5K, your flat will be worth 5K more.

So totally not worth it, unless you're planning to live there yourself for the long term and enjoy it, obviously.

Aaagh - should read if you spend 5K, your flat will be worth 2.5K more.

Againfaster - new builds and redecorated old flats aren't the same.

One of the big things keeping new flat prices high is that they qualify for 40% off thanks to Help To Buy, which resold flats don't.

sort of ignores the findings by thousands of people who work flipping houses and making ££££

I don't think you understand help to buy. it's not available on most new homes

Poor Foxtons:

www.sharesmagazine.co.uk/news/market/5975079/Foxtons-revenue-falls-in-very-challenging-London-property-market

Againfaster - I think you spend too much time watching old episodes of Homes Under The Hammer!

If you think there is such a good living to be made in 2018 flipping homes, why aren't you doing it?

Againfaster - Help To Buy is available on new homes under 600K in London. No-one claimed it was available on all new builds.

What was your point again?

Dh is.

London auctions busy places at the moment.