To think current home sellers are living in a fantasy world?

[CanStopWillStop]

We are looking for a new home (out of necessity unfortunately!) so I am now deeply buried in Rightmove.

The most significant pattern I'm noticing is that dozens of sellers, who according to Land Registry bought their properties in 2019/2020, are listing their homes at £100-200k more than they paid two years ago.

Considering the current dire outlook for mortgages &cost of living etc, AIBU to think that this is absolutely ludicrous money they are chasing?

I understand some people may have remortgaged or are looking to upgrade but a £100,000 mark up on a 3-bed bungalow you've lived in for a couple of years is mind-blowing to me. What's happening here? Greed? Desperation? Do they really think people can actually get mortgages on overvalued properties? AIBU?

You really think you did something there.

Look, you don’t understand how house ownership works. Just bow out instead of making a fool out of yourself.

The irony!

The market only picked up after the 2008 crash due to 'temporary', QE and ZIRP. Cheap credit. That is not an option now.
People may wish to buy now for their own personal reasons but that does not detract from the fact that asset prices will fall.

Oh I understand alright. If your house is collateral for your mortgage, while on paper you might technically own it, the bank has a lien on it as you've used your house as collateral. For all intents and purposes, the bank "owns" whatever amount of the value of the property you still owe them.

Yes. Agreed. Some people do not understand the nature of banking and mortgages!

@aboutanidiot do you own a house?

We had a client in 2009/2010 who had been a 'multi-millionaire' property developer. When the crash hit that country (EU country), he couldn't even receive job-seekers allowance as he had assets (severely depreciated assets, but considered assets nonetheless) but as he couldn't sell those assets, he had NO INCOME WHATSOVER. He couldn't rent them, nobody would buy them and the bank seized them in repayment of the debts he owed. Seizing them took time, but for the purposes of obtaining even the basic jobseekers allowance, he was a couple of years with no income whatsoever. He went from hero to zero in 2 years. His mental health deteriorated and the man became very ill. The stress was killing him. I've left that company so I don't know whether he ever got back on his feet.

I do.

Are LDIs the new CDOs aboutanidiot?

Not my area of expertise. In Finance I worked with the US market. It depends on what the underlying assets are.

This is an interesting testimony by a notable Economist to a parliamentary inquiry into the banking crisis in Ireland in 2008.

inquiries.oireachtas.ie/banking/wp-content/uploads/2015/02/Opening-Statement-David-McWilliams.pdf

He was saying what the old-school estate agents were saying. Properties are being overpriced and people were over-exposed financially, but if you didn't play the game, you were going to go under yourself. They're one of the few estate agents still standing as their reputation was crucial to them.

David McWilliams used to work for the equivalent of the BofE and as an investment bank economist. He was also a columnist.

They come from the same algo universe dreamt up by whizz kids PhD maths wonks gaming the financial system and at the same time making it unstable. Parasites anyways.

But in a housing boom something odd happens: when the price rises the demand actually increases. This is because people worry that prices will go yet higher

That's a quote from that document I linked to from David McWilliams.

If you're not into reading lengthy documents, this was from 2003 in Ireland again cited during the inquiry.

And why haven't those cash buyers bought anything yet?

Waiting for the market to drop perhaps?

If it starts dropping at what point would they decide to buy? At the beginning of the drop or at the bottom?

Cash buyers for buy to let here
give a price as soon as property becomes available and leave it on the table

it is why non cash buyers never get the cheapest flats

here in gentfried east london, prices holding up....sales going thro....no reductions as little for sale....bank of mum and dad are sloshing the cash to the young couples around here.....skips within days of purchase....!!

Salubrious east London. Who'd have thunk it.

I never thought it would happen....bought here in the 70's for pennies....now going for 850k...!!!....cant believe how much cash these young couples have for major refurbs and lofts...usually only one working....hard to walk on pavement now...far too many buggies....!!

Only 44% of UK house owners have a mortgage on their property, the majority of house owners are mortgage free. Of those that have a mortgage most are on fixed rates.

The rest of the western world housing markets are dropping. I don't know why some of MN thinks we are immune from a global event. You need FTB to keep the housing market going if they can't get mortgages then moves aren't going to happen.

What percentage of the UK have a house owned or mortgaged?

What percentage of the POPULATION (vs your slithery 'house owners') own a property mortgage free?

Misleading fuckery again.

I'm going to watch Bambi or something. Because this is worse than Bambi.

Hardly surprising when 54% of house owners in England are over 55 and 35% are over 65 (couldn't find stats for

Jesus! Will ye look at the fucking figures!!!!!!!!!!!!!!!!!!!!!!!!!

House owners are not necessarily owner occupied either. FFS.

The lies being spun. Christ almighty.