House price crash

[Neron]

Seeing a lot of comments about this, some delight in that property could be bought cheaper in a few months.
Surely those houses will only be available because the owners have lost their jobs/repossessions etc? Why would we delight in that? I could be wrong, but those who don't have to move probably won't as no one would sell for a loss unless forced

It’s also harder to buy, which people aren’t taking into account, my friend purchased her first house not long after the recession and even with a 25% deposit and excellent credit scores the best interest rate they could get was 5%. Those 95% mortgages fixed for fives years at 3% and 90% at 2% will be a thing of the past.

But it's always the same when house prices fluctuate - buyers are happy, sellers unhappy, or vice versa. Human nature.

Don't panic buy. They say. Don't stockpile. They say. There is plenty of food. They say.

And yet.

www.bbc.com/news/amp/business-51961624?__twitter_impression=true
Coronavirus: Supermarkets 'drastically' cutting product ranges

While executives insisted there was no shortage of food, they were struggling to restock shelves fast enough. Meanwhile online delivery services are running at "maximum capacity".

However, there were warnings that the next potential weak link in the chain is at food manufacturers themselves. If production gets hit by staff absences that will mark the beginning of a new and potentially serious supply chain problem.

"We are not there yet but that is the next big worry."

The mixed messages aren't exactly reassuring.

Sorry wrong thread

@RedToothBrush I know this is a wrong thread, but I would still like to reply...
Chill the fuck out people. Look at other countries. My family is in a country on full on lockdown. They have EVERYTHING. The shops have EVERYTHING. The only reason we here have NOTHING is because people are dumb selfish panicky morons who can't think 5 minutes ahead and believe that there will never be any more tp in shops or whatever.
God. The stupidity of people is astounding and is starting to make me SO angry.

Don't have a go at me.

Have a go at the media.

Media are doing exactly the same thing everywhere else. It's just here that people think they need to have a wardrobe full of fucking tinned tomatoes and then there is nothing for the vulnerable.
As much as I love Britain and it's people (that's why I live here), this has made me really, really frustrated.

Sorry for derail here

We're in the middle of a house purchase and intend to see it through. We're renting at the moment, and decided that instead of paying expensive rent each month, we'd be better off getting a little house (just me, husband and the cat).

Husband's job is (as far as we can tell) secure, but I will be looking for a new job once we move. Pulling out of the house move now would be counter-productive for us. We have to live somewhere and we've gone for a mortgage of around half of what we could have borrowed - and that's making me feel much more comfortable about the whole thing.

We talked about stalling, but are going to go for it and have the confidence that things will be ok. I never once thought about either trying to get more off the price of the house, or pulling out and seeing if prices drop - it just seems like a bastard thing to do, really.

I'm going through a divorce, house has been on the market for some months. I'd moved in with my elderly parents but have had to move back to the house, with my soon to be ex, because they need to isolate and I'm putting them at risk living with them. This could now go on indefinitely, I'm not expecting a sale any time soon so I've got to stay in a toxic situation indefinitely. If house prices crash I wont get enough to be able to buy anywhere else and where I'm moving to rent is astronomical and wages are low. So I'm just hoping and praying this isn't going to affect house prices too much ☹

Well, anyone looking to buy a house will also have to contend with the fact that borrowing will be more difficult, any investments they hold have decreased in value by 25-30%, and their pension pots are seriously devalued too.

So anyone who’s crowing possibly hasn’t taken in the bigger picture yet!

Monkey that is why as it unwinds first time earner buyers benefit and investors don't.

Worth bearing in mind last 10 years of dysfunction means over 60% of housing now owned mortgage free and in most at risk areas like London Govt is on the hook for up to 40% of value via HTB for recent new home purchases (Bank of Mum and Dad also similarly on the hook where large deposits have been gifted due to prices out of line with earnings and therefore rising cash deposit requirements). Plus levels of FTB have been massively depressed in most inflated areas for last 5 years +.

I don't really see why it's that different to people being happy that house prices stay high or continue to rise In either scenario there are winners and losers.

Well, anyone looking to buy a house will also have to contend with the fact that borrowing will be more difficult, any investments they hold have decreased in value by 25-30%, and their pension pots are seriously devalued too.

Well, yeah. Everything is shit financially. So the fact that house prices might drop is about the only silver lining right now as far as I can see.

I think it's a vastly different situation.
A natural increase/decrease vs a global crisis meaning a lot of people could and would lose everything.
Silver linings in people losing their jobs and probably their homes

I know how terrified people are of zombies around here, but this is worth a bump as it can’t be said often enough:

I don't really see why it's that different to people being happy that house prices stay high or continue to rise. In either scenario there are winners and losers.

It’s quite clear that no government is truly interested in a housing market that works well for everybody. Therefore, we are left with disasters natural or otherwise to help set things aright again.

The only people who benefit are cash rich investors.
And people with hard-earned savings who aren’t equity rich investors (we do exist).

When a situation is allowed to develop in which “affordability” is all that matters, with the actual price of housing almost relegated to an afterthought, all anybody is going to be interested in is keeping prices high, no matter what that does to our ultimate quality of life.

A natural increase/decrease vs a global crisis meaning a lot of people could and would lose everything.

There hasn't been anything "natural" about the obscene increases in the last 15 years due to market manipulation.

If mass evictions start happening due to reposession of properties, where will the occupants go? If social housing is unavailable and they are unable to privately rent due to trashed credit rating (repossession), what options will they have?

They'll have the same options as those who get kicked out of their rented home if they can't pay their rent or if their landlord just feels like it.

So what are their options? genuine question. Some will go to families but what about the others? will we end up with a temporary accommodation overfill or tent cities?

This is what I don't understand if you follow this scenario through the possibilities are horrendous. Do you think the government is looking at contingency planning for this?

Well they'll get somewhere. It probably won't be very nice. There are a lot of shitty private rentals with equally shitty private landlords out there but nobody seems too bothered about it.

Repossession will be a last resort for them

It wasn’t in the early 90s. I remember being considered very odd because I wouldn’t even consider a repo because I refused to profit from someone else’s misfortune in 1991.

So what are their options?

A house isn't going to disappear just because the mortgagor can't make the payments - perhaps the bank will rent it back to the previous owner? Or grant mortgage holidays forever...well at least until death when the total debt can be passed on to the next generation?

Anything is possible - after all, current homeowners are special and must be protected at all costs.

I'm guessing that people will delight in the cheaper houses. But they're not delighting in the redundancies. The two are connected of course, but so are all sorts of other elements of any transaction. Someone's ideal house might come to the market because someone else dies. Someone might be pleased that their house has gone up in value because of the shortage of housing being built. Just because something goes wrong doesn't mean that we can't be pleased with the fact that some good consequences flow from that. In fact it helps to mitigate the bad news.

And there you go:
www.bbc.co.uk/news/business-52767058

These are the kinds of people who will benefit - I give you Fergus And Judith Wilson. Enough said.
www.google.co.uk/amp/s/www.dailymail.co.uk/news/article-3115091/amp/Ex-maths-teachers-Britain-s-biggest-buy-let-couple-start-selling-1-000-strong-property-empire-bid-make-100m-profit.html