People talking about houses dropping 30%

[ayvian]

AIBU to think they should shut up.

Banks are still lending, furlough has saved millions of jobs and no one is going to sell their biggest asset at a 30% loss. It just won't happen all it will create is a mexican standoff that will freeze the market until buyers get a sense of reality. We want to move, but not that desperate to accept a loss of what something was worth a few weeks ago. We'll hold on. It's wishful thinking that anyone can get a bargain right now

Some people won’t have a choice

Im not an economist but I do not think there will be a 30%drop and if there was it would be in regional bubbles not nationwide

IF the market drops that much people will only sell if they really have too. Most will sit tight and wait for the market to pick up

Also many furloughed will end up unemployed anyway, business won’t have the customer base for so many staff for a while. Furloughed for many will just be a sticky plaster for now

Interest rates are super low, even my house worth 600k we could get min wage jobs and still service the morgage. People won't just be handing back their homes

"People" saying what they like makes little difference to what you get for your house. If you can find a buyer, great, if not, that's how it is obviously.

No idea about percentages but we are in for a shit time economically and houses, like everything, are worth only what people are willing and able to pay.

We have just gone on the market. We do really want to move but won't be taking stupid offers. We shall stay put if we don't get a realistic offer as we need it to afford our onward move. I think the market will then just stagnate for about 6-9 months other than people who really have to move.

@ayvian you can pay off a £600k mortgage on £32k a year before tax? Care to share some budgeting tips?

People talk things into reality, to a certain extent. It's dumb.

It will be more than 30%.
Sorry, dude.

Interest rates mean nothing to people who have a fixed rate

Asp, what "people"?

There is likely to be some sort of drop, although how long for is anyone's guess.

It will be more than 30%.
Sorry, dude.
Complete tripe.

Some people won’t have a choice

This - there will be people (probably quiet a few) who lose their income and lose their home as a consequence. Some may be repossessed, some will choose to sell rather than be repossessed. There will also be people with no choice but to move, for one reason or another.

Also, not everyone who sells their home for 30% less than it's current value will be making a loss - it depends when they bought. If your mortgage was paid off years ago, and you want to move, it's likely the market value of the house you are buying has also gone down by 30%, so it's no skin of your nose to sell.

I am planning to stay in my house for 20 years plus, so it doesn't matter to me as long as I can pay my mortgage, but there are plenty who aren't in my situation. The reasons for selling houses are far more varied than your limited experience.

Drink a £600k house doesn't necessarily have a high mortgage on it.

Ugh, so many typos!

But it doesn't matter what the drop is, as long as it also drops for the property you want to buy. 30% sale reduction and 30% reduced purchase price means you'll be in no worse position

Not in the trade they aren't. Agents are now getting a lot more interest from buyers than they have stock. The one I work with are making sure they know who is more or less likely to actually proceed and are prioritisin gthe ones who can.

'People' can say what they like 'dude'. But it is not inevitable that here will be much of a drop at all!

Ultimately it sucks for older people who want to downsize and live off the equity they'd built up.

Well that's nice for you. You obviously have lots of equity if you could service the mortgage on minimum wage jobs, which might not be easy to 'just get' if a lot of restaurants and shops, many of which were teetering on the edge of bankruptcy before coronavirus go bust.

However, imagine that your neighbours have just bought their house, have a half million plus mortgage, that they can only afford to pay if they both keep their 'big jobs'.

One or both of them loses their jobs in the recession that is bound to start soon and the only job they can get is in a city 200 miles away, so they have to move. Their mortgage lender has refused them permission to rent out their house, as is their right, so they have to sell it now so they can afford to move.

Only lots of people aren't looking to buy expensive houses because they're suffering financial uncertainty, there's far more sellers than buyers, houses are taking ages to sell, people get desperate, banks are threatening repossession and people start cutting prices so they can sell before the bank takes their house off them anyway and auctions it off to the highest bidder, who still pays a lot less than you thought your house was worth in rosier times. It's not just buyers who need a sense of reality.

Better than the last thread about downsizing. The gleeful "Oooh! I bet there'll be a lot of big houses on the market soon" was a tad too ghoulish for me!

Interest rates are super low, even my house worth 600k we could get min wage jobs and still service the morgage. People won't just be handing back their homes

This is one of the most idiotic comments I've ever read. Are you really assuming that everyone has a mortgage that is low enough to be paid on a minimum wage job?

Well I don't, and my house is cheaper than yours.

And in the current climate, there will be some people who can't even find a minimum wage job.

MN seems to be full of people who cannot conceive of anything beyond their own limited experience of life..... it's surreal.

Why should they shut up though? People are staying schools won't open in June, we will/won't have a vaccine.

Personally house prices dropping would help me move up the ladder & I would take a drop to this.

Of course there will be a huge fall in house prices,I have lived through several house price crashes,this is going to be worse than any of them.

30% drop at the very least.I have noticed a few new listings on Rightmove that appear to be bargains.

Ultimately it sucks for older people who want to downsize and live off the equity they'd built up.

Yeah, people with a secure income (pensions) and masses of equity are the real losers in the current economic climate.... won't somebody think of them?