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

Maybe il finally be able to afford this 2 bed mid terrace (599sq ft!)
Just went on the market during lockdown for £850k

Oops forgot the attachment

@motherf88

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

What she said ^

Even with a 30% drop I can't afford to expand for something like this

www.rightmove.co.uk/property-for-sale/property-77786899.html

Or I need my parents to downsize but I have siblings 😭 (I love my siblings really)

I just had a look at Rightmove and within the 2 miles from my house there have been 5 houses listed since beginning of April and out of those 2 have been sold already

How are you managing to see what prices those sold properties went for @Rebelwithallthecause?

Urgh, ANOTHER one of these house price threads. As I said on another thread yesterday, I remember the 90’s crash and someone buying a whole flat on a credit card down the pub. Not the deposit, the entire flat.

Most people on here have never experienced a real house price crash & the last decade has been a state sponsored Ponzi scheme.

Housing is not going to survive the biggest recession in 300 years - and I am a homeowner who stands to ‘lose’ to but honestly, if it rids this country of its distasteful obsession with how much their fucking property is worth and means people see houses as HOMES again then bring it bloody on!

And it literally amazes me how invested some people on this thread are in the value of their house. As someone said, if you attach your social standing to the value of your house, you are in for a big fall

Except for it will bankrupt some people and render them homeless if the prices do crash to the levels some people are saying

In New York it's going to push prices up in the nicer suburbs as people seek to move out of the city:

www.cnbc.com/2020/05/15/gov-ned-lamont-people-could-move-from-new-york-city-to-connecticut.html

@Rebel yes, that’s what happened in the 90’s. It was awful but people survived it. They rented until they could get back on the ladder again

I expect it will make a big difference in NY as I think America tended to have less of a remote working culture before Covid.

DH was offered 2 jobs last yr, one an American firm the other UK but both with global offices. Packages were pretty similar but when he asked about wfh the American firm said no whereas the UK agreed to 1 day a wk.

Initially economists predicted house prices dropping 3-5% mid April

This was then revised to 7% on average across uk but with London at 5% because the government reported that housing transactions wouldn’t be able to go through until July at the earliest

They haven’t revised it again since housing transactions have been able to go through again

Nothing to worry about then rebel

i like how you think people can just have a 600k house on minum wage-or was that jusit a stealth boast

my neighbours have put their house up same price they had it on last year and it didnt sell then-theyve got fa chance of selling it now

For the vast majority no

For those that have bought overpriced new builds or in areas that are being affected the most by the unemployment as a result of COVID (seaside towns and other tourist spots) yes it will be a worry for sure

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

I don't get why home owners would be so up in arms about this. I own my house but if its value drops by 30% then the price difference between my house and the house I'd like to move to becomes less unattainable.

Surely this is the case for most homeowners.

Like others said, house prices did drop 30% in Ireland 2007-2008.

It was awful but people survived it. They rented until they could get back on the ladder again

so you think a crash will magically bring the rental market down too?
If you can't afford your mortgage, you really can't afford a rental. So we all get housing benefit?

30% drops around here would mean a drop from average house price of £375 to £260.

Maybe 30% drops will be seen again in the north where houses are cheap already and therefore drops are far smaller

Sorry to home in on one of your posts again @Rebelwithallthecause but your housing logic does seem highly bizarre to me

And the idea that the higher the prices are the less they'll fall sounds like the wishful thinking of someone living in an overpriced house!

so you think a crash will magically bring the rental market down too?

If a fall in house prices is driven by a fall in demand due to unemployment, then the fall in demand brings down rents as well.

We’re on a tracker mortgage as we were selling this year so didn’t want to enter another fix, we are not likeLy to get a fix as husband has lost his job. I’m shitting myself on interest rates, at the moment we’re doing well out of it and our monthly payment keep going down so there are winners and loserS. At the moment we feel like both.

We were planning on moving this year, but a significant drop would put us in negative equity so wouldn't. It's a want but not a need so we would sit tight for a year or so and see how things played out.

We have a fixed rate mortgage and enough savings to cover the mortgage for the best part of a year if the worst happened job wise. I can't imagine we are the only person to feel the same

Bottom line, 30% drop could end up being optimistic.