To think a house price crash is definitely happening

[JudesBiggestFan]

I'm seeing house prices drop down and down before my eyes.
We
sold our house at 30,000 less than asking a couple of months ago but the chain has now fallen through. Three months ago our buyers sold, it fell through, they relisted two weeks ago at 20 grand less - so 275000 instead of 295000 and one viewing, no offers so far.
So we're all on hold, but I know they now won't sell at that price as first time buyers in this area just can't afford that. Every day I am seeing houses on Right Move that are hanging around for months or being reduced again and again.
I feel like the market hasn't caught up with interest rates...people just don't have the cash needed for current house prices and high interest rates on top but sellers are reluctant to reduce. Feel really stuck - we need to move for work reasons but the market is the slowest and worst I've known. Is it the same everywhere?

Not in my area it's not...houses sell in hours...be useful if it did slow down...I'm in the Midlands in a tourist area

Where I am and at my end of the market (first time buyer, 2 bed terraced) things are still going for over asking price. I've lost out on 3 properties in last month despite offering the asking price or a bit over.

I'm not convinced that's an indication of anything.

Same as some others, would have agreed with you two months ago, now in my area houses are flying off the shelf again. I think
People were hoping and waiting but are moving again. I noticed three houses on my 1km school run have gone for sale and sold within the last week

We tried to sell a couple of months ago but had to give up as we couldn't get what we needed. The house we had our eye on sold though! Things are definitely quite slow at the moment

Houses in my town (south wales) are all selling. We just had our house valued for remortgaging and it was a lot more than we were expecting. It’s not doom and gloom everywhere.

Trouble is if they fall people just sit tight and don’t move so doesn’t really help many people. We’ve all got to live somewhere.

https://www.halifax.co.uk/media-centre/house-price-index.html

They fell 3.2% over the year (according to a VI who sells mortgage debt, the real figure will no doubt be higher)

Can't see it happening in the area I live in. Prices have never crashed, they have stopped rising so quickly at some points.

Sales down 50% and mortgage applications down 40% and still everybody potentially in the market to buy a house lives somewhere right now, it really isn`t a big problem, they can fall a LOT and no one will be put out much.

Can you link so we can have a look with PropertyLog?

Not here. Just checked the price of houses like mine in nearby streets and they’ve gone up again.

I disagree, prices (were) fuelled by too much cheap debt being offered to people with little economic understanding of how quickly things can change. House sales are down about 50% and mortgage applications down about 40%, all those people stepping back form the market are living somewhere, they are not homeless.

Maybe they are living at home because rents are dropping as well as house prices......

https://www.property118.com/rents-fall-and-voids-rise-in-englands-lettings-market/

"All regions monitored by the index saw a decrease in average rents in October and landlords in the South West saw the biggest drop of 20%, from £1,493 to £1,190."

Still silly numbers but going in the right direction, very very good news!

The data linked in that article quite clearly shows that rents spike every summer, and fall every autumn. The overall trend is still up up up.

20% drops normal from summer to autumn, can you link to data that backs this up?

Lots of flats in my area have been on the market for seemingly a few months (would sell quickly) and a house in my street was on for over a million and was withdrawn from sale recently presumably as it was overvalued.

In DB’s area though especially flats in the block where they are, these go quickly, at asking price and above, they got an offer for their flat in August but were away and hadn’t had time to view other properties - and theirs wasn’t on the market, someone was interested though, and asked via an agent.

I'm literally referencing the source of the data for the article you linked. 11% this October, 11% last October, 8.9% the year before, 9% the year before that. It's obviously cyclical.
https://blog.goodlord.co/rental-market-catches-its-breath-in-cooler-october-goodlord-rental-index
https://blog.goodlord.co/rents-fall-and-voids-cool-as-market-settles-ahead-of-winter-goodlord-rental-index

If prices have fallen 10% in last 18m, and inflation has risen 15% in last 18m.... It's quite a correction (and about time, too).

I wonder is deadhousebound changed names? I was selling a year ago and he was scaremongering too much.

The stock is very low now in our area and there are plenty of cash buyers as well. It is going to get better and prime areas would continue to sell. We are putting it back as soon as things are definitely better. Funny that two people have tried to get in touch again but we are off market until further notice. I would not sell it to those time wasters anyway. They were trying to push the price down and play games. Hopefully we get better people next time.

In in CR3 Surrey - London and prices 100% dropping as I’m watching the market

In Oct 22 we were in the immediate aftermath of Liz Truss’s disastrous budget. Interest rates had gone from 1% to 5% practically overnight, and mortgages were being pulled left right and centre. I don’t think a slight recovery in house prices between now and then means house prices are rising.

I do agree we’re not likely to see a major crash though. Probably just remain stagnant until the economy picks up again.

Perhaps the middle is affected, but not the bottom or top ends. Top ends will continue not to care. Bottom ends, like mine, are still increasing, because too many people are desperate to escape the rental nightmare.

My house on a council estate is still steadily going up in value every month.

Drops seem to be increasing, can you go back further, and also reference the 20% drop that I mentioned (SW) is that also cyclical?

"Probably just remain stagnant until the economy picks up again."

You would need a complete reversal of global central bank policy, AND inflation to vanish for that to happen, it isn`t going to happen.