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Original poster

House prices are starting to fall

246 replies

Greenfairydust · 01/03/2023 09:02

In the news this morning: house prices are falling. Property prices fell 1.1 per cent in February, the largest decline in a decade and this is expected to continue for the next few months.

www.ft.com/content/c09efd19-9920-4f4c-876b-d1e1a0235852

How will this affect the market I wonder and buyers/sellers behaviour?

As a buyer viewing houses at the moment, It won't put me off buying but it means that I am giving myself a strict budget and expect sellers to be reasonable and price their house accordingly.

What do other people think?

OP posts:
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oiltrader · 01/03/2023 11:53

Framilode · 01/03/2023 09:35

There will be less on the market. People will stay put mostly. Those that have to sell debt, divorce, death may have to accept less.

there is more and more coming to market x

rcat74 · 01/03/2023 12:02

There is no sign of it in the south-west city where we live but houses are not selling. The only ones that sell are the houses for renovation which are presumably snapped up by property developers with cash.

Littleflowerseverywhere · 01/03/2023 12:09

oiltrader · 01/03/2023 11:53

there is more and more coming to market x

Show quote history

That’s just after everything stopped following rhe mini budget and Christmas. A one percenr drop isn’t exactly major. But if it continues to drop, even minor lo, then there will be precious little on the market.

Littleflowerseverywhere · 01/03/2023 12:10

Greenfairydust · 01/03/2023 10:25

''@Littleflowerseverywhere · Today 10:00
As a buyer viewing houses at the moment, It won't put me off buying but it means that I am giving myself a strict budget and expect sellers to be reasonable and price their house accordingly

that only works if there is a glut of properties available and few buyers . If little on the market, and more buyers, which will be the case, then you will just be competing with others to buy the property''

I disagree.

The trend in my area for the past couple of months has been houses not shifting/being reduced.

Landlords are selling up and quite a few properties being sold by older people who need to move due to health issues so there are properties on the market. There is not much ''competition'' for these.

Also houses are being sold but then come back on the market a few weeks later because the potential buyers could not secure a mortgage or got quotes for refurbishment work that were so high (due to cost of material/workmanship going up) that they had to withdraw.

I think this is going to be replicated in quite a few places.

The properties that are selling are either the ones that are priced realistically or the ones that are really desirable/have already been nicely refurbished.

Average properties/properties that need work that have been priced 'optimistically' by agents/owners are not moving.

This only makes sense if you’re a first time buyer looking at typical first homes. Anyone else who is buying is selling. So the two cancel each other out.

Heytheredaisy · 01/03/2023 12:15

We're moving from a tiny house in high price area to a big house in low price area 350 miles away, so we'll continue to sell and buy as planned.

But I'll only sell to someone chain free and I'll only buy somewhere chain free.

I refuse to get involved in a long complex chain while moving long (ish) distance. And I'll happily take a lower offer from someone who is chain free!

Most of the properties in the area are chain free too!

Leftbutcameback · 01/03/2023 12:41

Prices still seem a bit mad to me. I was looking at a house on our road I consider overpriced (3 bed semi, needs modernising, over £500k) and I see it has a note now saying there’s an offer £15k over the asking price!

Mildura · 01/03/2023 13:06

oiltrader · 01/03/2023 11:53

there is more and more coming to market x

Show quote history

Just as spring appears around the corner, typically the busiest time of year for new instructions.

Heytheredaisy · 01/03/2023 13:09

The houses we're looking at are around £350k. They often get reduced by £30k before being SSTC with an even lower offer.
More reduced properties on Rightmove daily than new properties. (In the area we're looking!)

GasPanic · 01/03/2023 13:09

AllWorkYoPlait · 01/03/2023 09:04

Sellers who don't need to sell will hold. Buyers will buy but not over pay.

People who don't transact don't make the market.

I can believe my house is worth £400k and hold it when it is only worth £200K, because that is all people will pay in my area.

By holding it though I don't make the market in my area. It's the people who sell at £200K that do. Houses are generally valued by what similar properties around them go for. So if I am holding mine at what I think is £400K, it's the people around me buying and selling that actually determine what it is worth.

beAsensible1 · 01/03/2023 13:13

Reallybadidea · 01/03/2023 10:05

And that's a good thing IMO. The only winners in a crash are the wealthy.

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The way the housing market it is nowadays all homeowners who bought before these insane prices are "the wealthy"

beAsensible1 · 01/03/2023 13:15

Leftbutcameback · 01/03/2023 12:41

Prices still seem a bit mad to me. I was looking at a house on our road I consider overpriced (3 bed semi, needs modernising, over £500k) and I see it has a note now saying there’s an offer £15k over the asking price!

4 bed maisonette on my road £1.795 million

Absurd country

Mildura · 01/03/2023 13:17

beAsensible1 · 01/03/2023 13:15

4 bed maisonette on my road £1.795 million

Absurd country

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In fairness that's incredibly unusual, and has to be in a very sought after London postcode.

beAsensible1 · 01/03/2023 13:24

Mildura · 01/03/2023 13:17

In fairness that's incredibly unusual, and has to be in a very sought after London postcode.

Show quote history

its nice enough but covered in dog poo! I'm intrigued to see if they get asking because its ridiculous.

If thats the budget there are much better options than here.

Luana1 · 01/03/2023 13:52

I can't see how a 1.1% fall in house prices will change anyone's house buying prospects. Maybe a 10% dip would, but as has been said if house prices fall that much, most people will just stay put unless they actually need to sell so the market will stagnate.

C4tastrophe · 01/03/2023 14:03

The data lags reality. These figures are from 4 months ago.
I read today that grocery inflation is 17%. The government is already the backstop for energy.
They must get inflation under control. There will be no soft landing or stagnation in property. It will be a crash.

rainingsnoring · 01/03/2023 14:06

Luana1 · 01/03/2023 13:52

I can't see how a 1.1% fall in house prices will change anyone's house buying prospects. Maybe a 10% dip would, but as has been said if house prices fall that much, most people will just stay put unless they actually need to sell so the market will stagnate.

It's 1.1% on ONE MONTH.
Prices have fallen 10% in some areas and that's without adjustment for the 10% inflation rate.

Annual house price growth has now turned negative according to Nationwide:
www.nationwidehousepriceindex.co.uk/reports/annual-house-price-growth-turns-negative-in-february-falling-to-its-weakest-level-since-2012

@Greenfairydust I think we have a face off between buyers and sellers in some areas. Some sellers (and agents) have started to reduce asking prices.
Contrary to what some posters are saying the supply has increased in the last year and buyer demand has gone down a lot. I think we will see a lot more properties coming onto the market in Spring (selling season) giving buyers more choice. I also think a lot of people think this is a little, short term blip and that inflation is going away soon and the BOE will reduce rates and everything will rocket off again. Neither of these are correct imo (far from it)!

Littlegoth · 01/03/2023 14:10

1.1 % of 500k is still only 5k though. This is a slow time of year anyway for house sales, from March and April they tend to
pick up so will be watching with interest.

C4tastrophe · 01/03/2023 14:11

Littlegoth · 01/03/2023 14:10

1.1 % of 500k is still only 5k though. This is a slow time of year anyway for house sales, from March and April they tend to
pick up so will be watching with interest.

By the end of the year that £5k will be £50k

Heytheredaisy · 01/03/2023 14:12

😂

bellac11 · 01/03/2023 14:13

Luana1 · 01/03/2023 13:52

I can't see how a 1.1% fall in house prices will change anyone's house buying prospects. Maybe a 10% dip would, but as has been said if house prices fall that much, most people will just stay put unless they actually need to sell so the market will stagnate.

This is what im wondering. If someone is looking at around 250k mark, thats 2500 off, while that is a substantial amount, its pennies compared to the borrowing overall. I dont think its going to make a lot of difference, although the price may continue to go down of course

Intergalacticcatharsis · 01/03/2023 14:21

There will be more sellers this time because landlords are selling up. So landlords needs to be added to the pool of those having to relocate, probate, people who need a divorce.
If the market dips, local authorities should be funded to buy more council housing back.

C4tastrophe · 01/03/2023 14:24

Intergalacticcatharsis · 01/03/2023 14:21

There will be more sellers this time because landlords are selling up. So landlords needs to be added to the pool of those having to relocate, probate, people who need a divorce.
If the market dips, local authorities should be funded to buy more council housing back.

Needs to be at distressed sale prices don’t you think?
Otherwise it’s just a landlord bailout.

rainingsnoring · 01/03/2023 14:58

Littlegoth · 01/03/2023 14:10

1.1 % of 500k is still only 5k though. This is a slow time of year anyway for house sales, from March and April they tend to
pick up so will be watching with interest.

The figures are seasonally adjusted already.
There will probably be a lot more properties coming on the market in Spring and potentially more sales at that time of the year but it doesn't mean that houses will sell for higher prices.
Taxes will increase in April, real salaries are negative, inflation is still very high, interest rates will increase in March, more people will be coming to the end of their mortgage term.
I can't see a reason why agreed prices will suddenly rise just because the daffodils have come out.

FTStheFirstTimeSeller · 01/03/2023 15:02

Really depends on area. Where I am it's not bidging down and houses move fast. But we are, even with price rises, still affordable area compared to many, with houses around and under 150k.

Who it seems to be hitting here are high value houses.

Im99912 · 01/03/2023 15:50

My neighbour had her house on the market last year for 375
she would have easily got 400k but she didn’t want people in the hoisin viewing it and wouldn’t do an open day 😂😂

a few weeks ago I saw it ok rightmove for offer in the region of 300k. It sold as she had a for sale sign on the board

my DSS put his house on the market a few weeks ago had 6 viewings wanted 460
got offered 425 and accepted 440 last week

in my son block of flats an apartment went up for 260 and was reduced within a week to 250k

this is in the southwest
only new builds seem to be staying high but they have lots of incentives to buy

You also have the ground rent issue where some flats and houses that have grid are finding it difficult to sell as all new builds from July 2022 only have a peppercorn ground rent so it’s almost a two tier market for flats and houses built before June 2022