House prices are starting to fall

[Greenfairydust]

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?

Yes we will need to sell in a couple of years as brought a starter home and will need to also move closer to family soon due to circumstances.

That’s really tough :( we also bought last spring/ summer in the height of frenzy and really regret it now. I’m so grateful we bought a three bed.

We’re house hunting in a very popular Sussex town. This time last year you couldn’t even view. Now everything being reduced and sitting on market weeks. We offered yesterday £50k under asking (more than 10% below) and they haven’t said no yet!

If you’re selling and buying then surely it’s ok if it’s lower prices as you’d sell for less than buy for less

Not if the equity erodes so we either break even or go into negative equity.

We could stay in our 2 bed but hopefully will have 2 kids by then so will be a squeeze.

Trying to build savings for another deposit , and making plans to not be in the poo
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Not ok if you have mortgage which is more than what the value would though.

I agree that I don't see 35% fall. Small correction maybe, bit it will go up again after couple of years. Like before. But since we don't have 100%+ mortgages, less people should fall into negative equity even if the reduction is 10%

It is fine if you are buying a more expensive place, not good if you are downsizing.
We have to downsize in a few years time so hopefully things will be more stable then.

Yes I read the article. I was merely posting it to underline that this is a global issue due to monetary policy and won’t be stemmed by government action.

I actually disagree with the amount quoted in the article. We are behind the curve as so are the analysts predictions in my opinion.

We have a systemic problem in this country, because a lot of our economy revolves around it (building, construction, legal, estate agents etc) more so than other manufacturing based economies.

We are reliant on wage price increases, that will be up against recessionary forces. The average salary in this country is £33k. Mortgages have long since outpaced wage ratio affordability, and now cost multiple times more due to interest rates rises. It’s logical that now prices will have to fall back as much into mean reversion.

That could mean 30% on average (20% in cheaper areas up north, 40% in southern areas that have seen the highest increases)

Nope just the eventual outcome since when the central banks did this, and then injected stimulus directly into the economy.

The process of inflationary pressures going from supply to the consumer end can take some time.

Where I live they're selling very quickly and for around 20% more than the asking price,

This is an anonymous forum, just tell us where this miraculous place is.

We got over asking as well. Not 20% though!

@C4tastrophe the north east of Scotland.

Friend was recently looking at a house - ex council 2 bed bungalow. On the market for offers over £120K - she offered £150 and it went for £165K - utter madness!

southern areas that have seen the highest increases

Have they though? Perhaps in ££ terms, but maybe not in % terms.

What is driving that then?
I understand Aberdeen is on it’s arse.

Yes Aberdeen is suffering. Small coastal villages (my house is 100m from the sea and would probably sell tomorrow if I wanted), people getting fed up of city life and moving up here.
You could sell a 2 bedroom house in the south and buy a country house with land for the same price.

what is the view or does anyone have information on the %of rental properties in the market, and the pending impact of legislation changes for tighter housing standards, efficiency & warmer homes? The leathal cocktail of legislation threshold, rising finance costs from 2025-2028 May see a continued offload of housing stock and downward housing prices

Houses here going far above asking prices! The houses anyway - the flats are being reduced. Interesting as I know any % fall or increases reflect all types of properties but I have definitly noticed a difference. We are in London.

We upgraded our flat to a house during the stamp duty relief period and I do regret it. The market was crazy and the house we bought is meant to be our family home - for some reason I haven’t relaxed into it - so I could see us selling at some point in the future.

That is good. There have been too many amateur landlords renting substandard property.

For those worried about negative equity we were too after buying at the peak prices in late 2007 / early 2008.

when we came to remortgage, we struggled to get many offers because not many houses were moving, and they were at lower prices than we paid.

we ended up sticking with the then current provider, and getting quite a good deal with them, and then things “corrected” very quickly. It might have been a bit of an issue if we needed to sell, and it was worrying at the time, but there were lots of horror stories around about price crashes, and in the end, it was only relatively minor.

No drops in our trendy area of east london, bank of mum and dad still shelling out big money so the young couples can buy, so little for sale that the buyers fight over houses and the purpose built flats with gardens, some even sold for cash to investment bankers..........the new build boxes are not selling and empty for a long time but still even more going up.

I'm seeing these 'landlords selling up messages' posts. Seems contradictory to the raising rental costs I'm seeing in my area.

Inflation is a bigger worry, as 1.1% is 11.2 % fall in real terms. A nominal 10% fall in house prices in next 12 months plus another year of 10% inflation could mean over 30% fall in 2 years. Scary.

Not really. If ot goes to anothe landlord, they willost likely raise rent. If it goes to owner occupier there is one less rental so bigger fight for the others.

Someone near mine dumped portfolio. 6 or 8 of them.

macrohive.com/deep-dives/the-mother-of-all-house-price-crashes/