Housing price crash

[Eucalyptusbee]

It's happening!

AIBU to be excited

You don't need a house if you have kids. This is my point. Its an aspiration thats very British. Its certainly not the case, even reasonably affluent families.
Maybe families can live in flats in countries where properties are bigger and there are lots of parks and public spaces. It doesn’t work in the UK where flats are tiny and there are no other outdoor spaces for kids to use. If we didn’t have a house we’d have to drive over a mile to a kids play area with swings, and five miles to the nearest public park with green fields.

A large part of the problem is that developers are being allowed to build without providing green public spaces and play areas as part of the scheme. They’ve just built 80 houses near me, plus one tiny play area which is smaller than my living room and has a single swing and a toddler slide. That isn’t enough.

My neighbour recently sold her house, found one to buy. Everything signed, her seller pulls out - she had two days to move. Has had to put all her possessions in storage and is now living with her elderly father. There are no houses at her price range on the market. Any which appear are sold almost immediately.

I shall tell her what your obviously hugely knowledgeable DH has said. I am sure she will be hugely reassured.

In my area there has been a definite slow down. 2-3 months ago houses were selling within days of going on the market. Now they’re sitting for a couple of weeks before being reduced, then selling fairly quickly after the reduction. The ones that are priced on the higher side with no reductions are just not shifting.

As I posted earlier. Couldn't even get a viewing in my area a month ago. Houses selling in days 20% above asking. Viewed 2 on Friday, 3 on Monday. Offer accepted today, but over asking but not much.

The market has changed over the last month. Not as many buyers around.

Might be a blessing in disguise. Give it a couple of months.

From a personal point of view, we're in the middle of selling/ buying right now. Probably exchanging in about 6 weeks. Are we, for want of a better term, fucking idiots?

@Florrey

I didn't say it would. I just said that I'm calling a 10% drop based on what's happened in NZ. Very similar housing market to us.

My exact point was bigger flats. If you bothered to read what I said...

It will benefit buy to let tycoons of the fergus and Judith Wilson type. If you have loads of money and can pick up distressed properties in auction, a crash will be your opportunity. For everyone else, it would be a horrendous, economic-depression-inducing nightmare, killing off labour market mobility.

Whenthegoatcomesin · 12/05/2022 18:00
From a personal point of view, we're in the middle of selling/ buying right now. Probably exchanging in about 6 weeks. Are we, for want of a better term, fucking idiots?

Very hard to say. House prices are very location dependent, as is type of house. Beyond that, are you FTB or got decent equity. Have you locked in for a while on a decent mortgage rate. Are your repayments at the very top level of what you can afford etc.

fact is you have to live somewhere. Even if it went down and you theoretically ended up in negative equity, might still be cheaper than rent and certainly more secure. Then you just sit it out, unless you paid a stupid amount over the asking price in the arse end of nowhere you can’t resell and can barely afford the repayments.

Not fucking idiots. Who knows what's going to happen. The normal rules of economics don't seem to apply at the moment. I'm also about to buy. Had an offer accepted today.

Eucalyptusbee
‘Didn't mean to come across as gleeful. Just hoping that those left off the ladder might finally have an in after so long.’

It doesn’t work like that. When the market seriously contracts, people just sit tight for as long as possible, especially if they’re in negative equity. Which means the housing supply also shrinks to only those in the direst of straits who absolutely must sell - because of debt they can’t repay or a death, for example. Which means, fewer houses come on to the market and those that do will be priced at a premium as those such as (true) cash buyers and first time buyers will fight over them.

A housing crash is a no-win situation for everybody.

Or just about everybody.

Literally nobody would benefit from a housing price crash, wtf are you excited about?!

Are you sure about that?

Literally nobody would benefit from a housing price crash, wtf are you excited about?!

That's just not true though. Ever increasing prices only benefit those downsizing but plenty who own still gets excited 😆

The SD holiday caused such a flurry of activity as so many people are stuck on the "ladder"

Not forgetting investors and landlords. Investors in particular. We have a Tory government, maybe the boom was rigged so investors could get rich from the crash? They could buy from distressed sellers and rent back to them 😯

I mean why they allowed people to get a discount on buying second homes god only knows. They have pretty much run out of props though.

It's also ridiculous to have so much income tied up in housing whether it's rents or mortgages. How we get out of this low growth high tax economy I've no idea.

I really hope their will not be a crash , we are soon to be first time buyers and we've worked so bloody hard to claw together our deposit. Their is so many great deals out there right now for FTB they would disappear in an instance . I also would hate to think of anyone losing their homes . I think we've all been through enough to be honest .
Their will not be a crash their will be a lull but to be honest I think that's needed as it was getting so silly .
Be careful what you wish for OP because if it did occur very few would benefit . Also could you live with yourself buying someone's home because they've been forced to sell it through no fault of their own ??? I couldn't .

@Allthe4s Thanks Allthe. I’m panicking a bit. We do have decent equity - lived in our first home for 11 years so it’s a good deposit on our new home. Borrowing to about 24% of net monthly income but that’s also now our only borrowing. Locked in for 5yrs at both 2.4% and 1.7% (portage) and we got for 7k under asking. Which all sounds okay except the world is going to shit and urgh. Also self employed so it’s never totally certain. And yet to experience the energy bill hike.

Also could you live with yourself buying someone's home because they've been forced to sell it through no fault of their own ??? I couldn't .

this is nonsense!

@Whenthegoatcomesin I think you will be fine.

Oh get over yourself

Not strictly true we bought a house in 2016 NW England it was priced 10k below 2007 level. Some people want to get out eventually saw that quite a lot when we were buying. We are waiting again to upsize as the prices can't continue like they are.

Can I ask why you say this ?

Why are people not focussing more on OP being a liar?