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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Housing price crash

534 replies

Eucalyptusbee · 12/05/2022 09:58

It's happening!

AIBU to be excited

OP posts:
TwinklingFairyLights · 12/05/2022 13:43

@Nothappyatwork

I'm not maxing out. My mortgage is 2 x salary.

I don't even like the house. I bid out of desperation.

JesusInTheCabbageVan · 12/05/2022 13:44

House prices dropping is a win win for everybody but those with multiple properties.

Looks like OP's DH has joined the thread.

treebit · 12/05/2022 13:44

Long term though weighing young people down in debt and making it harder to live as well as having taxes projected to go up as burden of older population of dependend kicks in evern more - probably isn't in the countries long term interests - though no government seems to get to grips with the problem.

This is a huge issue & one reason I think the economy is stuffed

grapewines · 12/05/2022 13:45

WhatsHoppening · 12/05/2022 10:36

Right...so OP owns a house...mortgage free...and is excited for a housing crash for her siblings? Seems legit.

Exactly this.

treebit · 12/05/2022 13:46

I have a house with. mortgage but thing prices need to drop. I have young dc so worry for them.

Nothappyatwork · 12/05/2022 13:47

TwinklingFairyLights · 12/05/2022 13:43

@Nothappyatwork

I'm not maxing out. My mortgage is 2 x salary.

I don't even like the house. I bid out of desperation.

I hear you I did exactly the same I’ve gone for a house that’s 50 grand under budget I literally completed last week so of course the housing market will of course crash this week I’ve been saying that for years 🤣
But rents aren’t dropping, the way I see it is I’ve got to pay to live somewhere where I currently am is £250 a month cheaper than renting locally

maryso · 12/05/2022 13:47

Most of us are only interested in buying or selling a home.

Apparently now is the best time to sell. So the question I ask myself is whether now is the best time to buy.

Of course the best time to sell for people holding billion pound portfolios in central London has been any time from when interest rates plunged from 5% to 0.5%. Haven't seen a single one of those buying back in the last 13 or so years. Is it "unaffordable" for them? Personally I wouldn't buy unless the alternative was being homeless and then not expect anything from prices as such.

MinnieMountain · 12/05/2022 13:48

As a conveyancing solicitor who got made redundant due to the crash in 2007, I’d rather it didn’t.

Furbaby65 · 12/05/2022 13:50

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Abuildingwith4wallsandtmrinsid · 12/05/2022 13:55

I do think anyone who says they are “excited” about a housing crash does not understand how economics works and how the government and Bank of England have worked previously. If there is a proper crash that is probably the least of our problems and we will have far bigger issues to contend with like tons of crime, empty shops, no functioning health service etc., missing medication etc etc., people freezing and dying en masse.
So I am just not worried about a price “crash” in property on the whole, a correction like we saw in 2009, perhaps. More likely the current bubble we have witnessed for the last 2 years will just come to an end.

Oscarthedog · 12/05/2022 13:57

Classica · 12/05/2022 12:28

hurrah.

Because house market crashes happen in a vacum and definitely don't go hand in hand with widespread economic hardship and major job losses.

Recessions are essential. They cull businesses that are weak and allow new innovative buisnesses to take their place. The reason for the productivity gap in the UK is that inefficient buisnesses were allowed to continue post 2008 due to being propped up by Boe funny money in the form of low interest rates and quantative easing.

UnintentionallyRidiculous · 12/05/2022 13:59

SarahSissions · 12/05/2022 10:34

Prices will drop because people can’t afford to borrow in order to buy. Those who can’t afford now, won’t be able to afford in 6 months which is why prices will drop.
if interest rates go up and borrowing becomes more expensive then fewer people can afford to buy so demand drops and that is what drives prices down.
all this means is some people will go into negative equity and end up stuck in homes that aren’t suitable or others will lose their homes completely

Yes that's what happens. I'm old and have lived through the property cycle 3 times. We bought our second house in 1989 for 130k and we sold it 9 years later for...... 130k. And we'd spent loads on it too.

I think it's a good thing if prices drop. Gives people the chance to get on the ladder. Prices will rise again, they always do, so if people sit tight they won't be in negative equity forever.

Isntshelovelywonderful · 12/05/2022 13:59

Imagine there was something else essential to life that had arbitrarily increased in price so much that almost an entire generation and most of our children couldn't afford it any more.

Now imagine someone said they were happy that the price of it might go down, even if it meant a bit of hardship for some- a lot of whom will have already massively profited from the price rise anyway

Would people be on here raging and calling OP a twat etc?

TwinklingFairyLights · 12/05/2022 14:00

@Nothappyatwork

It's an overpriced hovel on a main road. I'm so excited I've not only managed to get viewings but I've had an offer accepted.

MadameGazelleBand · 12/05/2022 14:01

This reply has been withdrawn

This has been withdrawn by MNHQ on the poster's request

GettingStuffed · 12/05/2022 14:03

It was reported that mortgages would probably be harder to get as the banks etc don't want to lend on houses that may get into negative equity or get defaulted on. It also said prices might call slightly but there's be no crash

noborisno · 12/05/2022 14:03

hepaticanobilis · 12/05/2022 10:09

It would only be good news for those who don't yet own. Lots of others would end up in negative equity or lose their homes, and that would have a knock on effect on the economy so really it wouldn't be good news for anyone apart from the very wealthy who could buy cheap properties with cash.

Blackrock are doing this aren't they, to rent back to us?

daimbarsatemydogsbone · 12/05/2022 14:04

Eucalyptusbee · 12/05/2022 13:01

Wow opened a can of worms here!! I suspect those going out their way to derail the thread and attack me could be the over leveraged and/ or I'm alright Jack camp

Houses are ridiculous. I just want siblings and children to actually have a chance to own one one day

I have a house and still have a big mortgage - of course I agree the current situation is shit for younger people and since I have a DD and Dnieces I want things to improve for their sake.

I have some equity so could take a drop in value as long as I can still afford to keep paying the mortgage.

You and your husband's pronouncements are over simplistic as are your responses to anyone who points this out.

BlackForestCake · 12/05/2022 14:04

Imagine there was something else essential to life that had arbitrarily increased in price so much that almost an entire generation and most of our children couldn't afford it any more.

Exactly, it’s only housing that people have this attitude to.

What other good or service is there that we think being really expensive is a good thing?

Why aren’t we celebrating the rise in electricity prices?

You wouldn’t expect to be able to sell a car or a handbag for 30% more than you paid for it, why do we expect houses to magically increase in value year on year?

Oscarthedog · 12/05/2022 14:04

grapewines · 12/05/2022 13:45

Exactly this.

I am in this position and want a housing crash. I only paid what I could afford to loose. If others overstretched and required a mortgage then that's their problem. And yes I paid for my house with my own earned money having left home at 18. And paid tuition fees at uni.

SamphirethePogoingStickerist · 12/05/2022 14:05

ThereWillBeSnacks · 12/05/2022 10:58

This has been done to death. Housing costs as a proportion of household income were very much more affordable, even in the days of 15% interest rates. Family homes could be purchased on one fairly ordinary salary.

And those of us who were young in the 80s keep on saying that isn't the whole story. But nobody listens. Cos the 'othering' and race to the bottom is more important.

Like, we had 2 average, non professional, working class salaries. And we could only borrow twice his and once mine. My salary was never going to be included as a 'real' thing because I was female, child bearing age, I was a bad risk by dint of being female, worse, a female in a steady relationship! So our purchasing power was not anywhere near what people these days think it was. So we couldn't afford much, even at the prices available back then. Not without a huge (by the standrads of the day) deposit, the size of which would have bought outright the flat we eventually settled on.

There is always more to it when trying to compare historical house buying with current mores. It isn't helpful to outright dismiss the difficutlies of then or now, as so many do.

Oscarthedog · 12/05/2022 14:06

If I was to celebrate a rise in electricity or food prices like people celebrate the cost of shelter going up Mumsnet hq would ban for trolling.

ReadyToMoveIt · 12/05/2022 14:07

Isntshelovelywonderful · 12/05/2022 13:59

Imagine there was something else essential to life that had arbitrarily increased in price so much that almost an entire generation and most of our children couldn't afford it any more.

Now imagine someone said they were happy that the price of it might go down, even if it meant a bit of hardship for some- a lot of whom will have already massively profited from the price rise anyway

Would people be on here raging and calling OP a twat etc?

Most people living in houses that have increased in value haven’t benefited from that increase in value. The only time they would benefit is if they were in a position to sell and downsize.
And as has been pointed out many, many times on this thread, house prices crashing are generally accompanied by recession, and that benefits very few people.
If it was as simple as house prices dropping significantly in a vacuum, while lending criteria/interest rates/cost of living etc remained the same, I’m sure more people would be excited by it, but it’s not. A crash doesn’t lead to 1000’s of FTB’s suddenly being in a position to buy.

SamphirethePogoingStickerist · 12/05/2022 14:10

BlackForestCake · 12/05/2022 14:04

Imagine there was something else essential to life that had arbitrarily increased in price so much that almost an entire generation and most of our children couldn't afford it any more.

Exactly, it’s only housing that people have this attitude to.

What other good or service is there that we think being really expensive is a good thing?

Why aren’t we celebrating the rise in electricity prices?

You wouldn’t expect to be able to sell a car or a handbag for 30% more than you paid for it, why do we expect houses to magically increase in value year on year?

Maybe its because of the knock on effects. They cover the whole society, commerce with other countries, all sectors. A recession is not just about house prices being reduced. As many who have lived as adults through a couple have tried to explain here, and on many similar threads.

And your car and handbag analogy is wrong, hve you looked at car prices recently!

www.thisismoney.co.uk/money/cars/article-10473767/The-second-hand-cars-soaring-price-cost-new-versions.html

Cap hpi's exclusive data shows which year-old used cars are now selling for more than what they cost new

gwanwyn · 12/05/2022 14:10

Isntshelovelywonderful · 12/05/2022 13:59

Imagine there was something else essential to life that had arbitrarily increased in price so much that almost an entire generation and most of our children couldn't afford it any more.

Now imagine someone said they were happy that the price of it might go down, even if it meant a bit of hardship for some- a lot of whom will have already massively profited from the price rise anyway

Would people be on here raging and calling OP a twat etc?

OP is being told that a crash won't do what she thinks it will - based on people's experiences.

Many people are saying this - myself included- but still feel prices ideally should drop or stagnate.

I also haven't made any money out of our property - the price going up is pretty much irrelevant till we come to move on.

I do think the government could/should do more - build more houses - find ways to encourage downsizing - look at rental market - longer term lets and more security for both landlords and renters could make a massive difference - but none have in last 20+ years it's is just more tinkering with minor effects if they do anything at all.

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