House Prices

[LGBirmingham]

House prices still seem to be rising? Does anyone else think this?

So house price proceeds are real - phew, for a minute there Crashy I was worried you had lost the plot!

The BBC has spoken, can we conclude that the answer to the thread is NO?

https://www.bbc.co.uk/news/business-66728391

Yes I agree house prices aren’t rising at the moment

I also concur

😂

Watch out for the 'unreality' though...

In some areas, they are. Friends of mine are in a sealed bids scenario this week, with offers over.

But that's entirely normal that some pockets of areas and certain properties will always be very sought after, outside the average.

Demand will, for the foreseeable, keep outstripping supply. Affordability is the obvious affecting consideration!

Do you agree that they are falling, and the falls are actually much better than the VI press releases make out?

"Demand will, for the foreseeable, keep outstripping supply. "

No it won`t, that is obviously incorrect.

https://www.msn.com/en-gb/money/other/barratt-sees-new-home-reservations-slump-by-30-as-mortgage-crunch-hammers-sales/ar-AA1gjLGR

Can you post a link to the general area where the "sealed bids" are happening so we can take a look with PropertyLog, it would be fascinating if there is an area still going up!

Out of interest, do you own any property Crashy? I noticed you haven't answered this question on other threads.

I will leave that to your imagination, opinions on a discussion forum should be pure and untainted by perceived vested interests IMO (although on most property forums it is obvious where the majority vested interest lies)

Yes I appreciate there are lots of mini markets really not one big property market. Prices will still be rising in some areas but I was speaking generally.

That’s a lot of words for No

Yes I think this would probably happen. That's good though as it means lower deposits required by first time buyers and mortgage over payments will make more of a difference.

Oh absolutely, on average/general terms.

Interesting though that this average drop is no where near the 'crash' doomers were predicting this time last year.

Property affordable to ordinary people described as "doom" is an interesting perspective, I would say a minority view now as people wake up to how the bankers ripped them off, but still interesting.

We viewed one in SE24 in August that went to sealed bids. We didn’t bid, but it was a very nicely-presented house, in the catchment area for an extremely desirable secondary school. Asking price was £1.15m, apparently went for £1.25m.

Having said that, we had an offer accepted at 5% under asking in the same area, so it is obviously very dependent on the house itself, and how much interest it generates.

Definitely not. Completely spiralling downwards. It's a buyer's market pretty much everywhere.

Unless the vendor is deluded of course

hahaha THIS!

yes, there are exceptions to the rules lol.

@BadCider demand for what? crummy houses in the uk

I think with the more basic houses people thought they were buying a perpetual future income stream because they could always sell the house for a profit (only helps them if they are trading down though) and there was FOMO as people thought the house would always be getting more expensive if they didn`t dive into mortgage debt straight away, I think with better properties many people were just showing off how much debt they could obtain and spend, you used to hear conversations where people would say things like "We paid 600k for ours" etc. In reality they borrowed 600k and their lifestyle will now have to shrink massively to pay off the debt.

At that level it is also quite likely they had about 50% equity and wanted a nice home too though. Every year the debt reduces, at the far end of a mortgage it goes down quickly. Lots of people reduced terms and paid down mortgages when rates were low and really ate into the capital. It really isn't as debt loaded as is being assumed which is one of the issues with the repossession projections. I don't think it is common to get a 100% £600k mortgage.

sure, that's Amortization. you start paying off actual principal more than interest at about 15-20 years in from the first day your mortgage started. and yes, you're correct, the tail end of the mortgage is paying off the house and payments are smaller, greattttt news for people who start their mortgages in their 30-40s and something to look forward to in their 60s-70s!

so now work out what £600k at 5.5% interest rate with 15-20% deposit with a 35 years term actually totals. that's what people are probably going to pay for a crummy house. they may pay a bit more here and there over the term, but most people, average people, don't have so much disposable income. a lot of people don't have savings.

it will take a short period of unemployment to hurt most people with these rates.

you can see why businesses are in a bad position too.

I agree housing is far too expensive and that is damaging. Increasingly out of reach for many which is not good for society.