This morning property news

[noddyholder]

Expert saying either stay put or if you are going to buy offer 30% off and expect to achieve 20% off otherwise wait until next year when 20-30% off will be the norm.This is as mainstream as it gets

It is finally getting through isn't it ? I do feel very sorry for a fair few people I know who have moved recently and spent huge sums of money doing up houses and those who have been living off equity. I did try to warn them but they though I was nuts.

Our extension is on hold and we are going to review things in a year or two to see what makes the best financial sense then.

Bummer for us.
We are having to move due to job relocation.

I know a few too who have lived the high life a bit!They are really tightening their belts.It will all even out eventually but anyone who has to sell will be in for a shock.

Surely for most people it is either good or makes no difference though?

I mean it is GOOD for first time buyers

it is GOOD for those who already own homes and want to move up a rung to a more spenny house as they won't have to pay as much extra

It makes no odds to people who are staying put and have owned their house for a while as the equity is all on paper anyway

The only people who are stuffed are buy to letters and those who have bought recently with high LTV and are in negative equity.

Countess you are right - if we all take a 30% drop then we're fine. It is just going to affect lots of people who have purchased beyond their means - 100%+. Shudder to think about those who took advantage of the 125% mortgages that were on offer.

cd that is what they said but all the people who have taken equity out and who have other debts will be in trouble when their fixes come to an end as interest rates are likely to rise a few times to combat inflation.

it is not good for me though, selling a house, my house is under offer and my buyers could get cold feet with all this scaremongering talk

the problem is that people have assumed a house is a money making pit. It is not. It is a HOME

we know people who have released equity to buy cars and go on holiday as they said "we are loaded our house has gone up 50%"

erm, your house has gone up on PAPER you nob

I don't think it is scaremongering though it is fact now.I hope your sale completes olive it is such a stressful system here where the buyer has so much power and no commitment ubtil quite far along in the transaction

Agree with CD. this is a good thing, the market is correcting itself and it is only tough for people who made unwise decisions by over-paying for properties or borrowing unwisely.

No, people who HAVE to move - e.g downsize for financial reasons - are also stuffed. Because they will get even less than they would otherwise. And may not be able to shift the house they are selling unless they accept a massive amount off the AP.

yy but the house they are downsizing too will be similarly cheaper

The mortgage rates thing is a different issue to house prices though

well I think the more talk of doom and gloom does cause jitters and can talk us into a recession tbh

like the government saying don't panic buy fuel, everyone runs out and fills up

if everyone is saying house prices will fall, buyers will pull out, sales will slump and prices WILL fall

in my case, my house is not sold until I have handed over my keys and my hands are on my equity, I am under no illusion that it is a done deal

It is good if you are moving up or are a first time buyer otherwise not so good,the problem is people are really aware of what their houses were worth at the very peak and can't accept anything less but a house is only worth what someone will pay and the banks will lend.

if you are downsizing you will lose out

10% off a £200K house is £20K
10% off a £400K house is £40K

so you 'lose' out on 20K

but again, if you have to move, you move, agonising over what ifs is nonsense, just get on with what you have to do

yes but like all other investments they can go down as well as up! Anyone who thinks otherwise is living in cloud cuckoo land

But if you are downsizing to free up capital, you will have less to play with after the sale and it may not be worth doing, depending on what you were doing it for...

absolutely agree

(with CD)

ah, thank you Oliveoil, you got there first...

Yes, the problem is a lot of people will have both bought and sold at inflated prices and are now faced with buying and selling at more "normal" prices, which seems like a come-down.

we are selling up to emigrate and may have less £££ to play with

but erm, so what? we bought low, we are selling at a time when it may not reach as much as it would have done 2 years ago

diddums, what do you do, put plans on hold? nope, you get on with it

on that note, I am off to lunch!

surely the captital you are freeing up is all equity that you have built up due to hyperinflation of property prices in the last 10 years anyway

You could alway sell and rent and wait for it to slide further so your capital goes further

that's what I mean, it is all equity on paper so it wasn't 'mine' to begin with was it?

I am trying to rationalise it, dh foams at the mouth

I think many people have had 'plans' for the money though and are now having to seriously rethink things.