Thoughts on house prices?

25
Posted 19th Mar
Hi All, Just wanted everyone’s thought on house prices & whether they will be affected by this virus etc. Thanks
Community Updates
Ask
25 Comments
I don't think it will be around long enough for it to affect them but that's just my opinion
MonkeyMan9019/03/2020 21:35

I don't think it will be around long enough for it to affect them but …I don't think it will be around long enough for it to affect them but that's just my opinion


Yeah that what was my thinking but the way the pandemic is affecting the economy is pretty severe therefore thought possibly there the housing market might be affected to.
With old people dying, more houses will be available. Not nice but true. House prices IMO will go down. By about 5-6%
London no outside maybe
If you look at what panic buying has done to shops...imagine what will happen then people start panic withdrawing cash and the banks stop us from being able to access our cash. People will start panic withdrawing because has cyprus did in 2013...overnight the banks just "took" 10% out of their bank accounts has a "bailout levy"
It’s a tough one, we’re in the process of selling up & buying a bigger house. Ours sold last month before it even went online for the full asking price... but we’ve got almost £25k reduction on the house we’re buying (a deceased estate). We even had two offers on the same day - not sure it would happen today though. In my area lots of houses have been reduced just in the last few days & a handful have sold this week. Mostly the cheaper end of the market it would appear
it will have a downward impact but how much depends on how long before we can return to normal life and how much this pandemic has affected our economy.
I’m also very interested in this... sold my place in January and in the past couple of weeks decided to break the chain and complete the sale so we are chain free.

We’re hoping find something soon! With my sale going through it would certainly put our minds at ease if house prices were to drop rather than rise.
Rocknroiia19/03/2020 21:40

With old people dying, more houses will be available. Not nice but true. …With old people dying, more houses will be available. Not nice but true. House prices IMO will go down. By about 5-6%


if the projections of 20,000 deaths are achieved with all the measures, which is said to be the best scenario, then this is a very small percentage of the uk population. a large proportion of this will more likely to be living in care homes than living in their own home. also don't forget people who live in social housing or renting.

if we end up with 250,000 deaths, which is the worse scenario, then that may have more of an impact in releasing up properties, but only in areas with an aged population. the population in the cities tend to be younger. having said that, currently it says the deaths in london are more than the rest of the countries, but that is because there are more people in london than anywhere else in the uk.
The market was and still is booming , it’s in the best shape it has been in jan/feb so that might soften any big damage . All depends on how long it takes to get the virus under control
It's not just deaths that will affect them unemployment will too. The US are estimating 20% unemployment when it's all over with, i imagine that we're expecting similar. Considering we're currently (or were a few months ago) sitting at 3.8% that's a huge extra amount of the population no longer able to afford or even be eligible for mortgages. For large parts of the country that's going to make it hard to sell houses.
A lot of “smaller” lenders have withdrawn all of their high LTV products yesterday evening (anything over 75%). So they are clearly expecting a drop in prices.
nicholasgatti20/03/2020 06:49

A lot of “smaller” lenders have withdrawn all of their high LTV products ye …A lot of “smaller” lenders have withdrawn all of their high LTV products yesterday evening (anything over 75%). So they are clearly expecting a drop in prices.


Rather mitigating risk I would say.
The Virus is a smoke screen for a financial reset, they have slashed base rate to 0.1% after 100 deaths, behave. House prices are about to tank because 50% of the population will be out of work.
The issue is that the crash in 2008 was not hard enough and tough decisions were avoided, the "virus" will be used as an excuse to make hard cuts.

"Never let a good crisis go to waste"

I would expect, 30 to 40% drop in house prices. Might sound dramatic, but if you look at what is happening and ignore the "virus" BS its clear what going on. Once troops are deployed to the streets "to help" expect the big cuts to come.
dufflecoat_moon_turkey19/03/2020 23:31

Comment deleted


yeah, that was the exact word used by the guy on the news item. he says it is still a lot of people but actually if we do manage to get down to that level of deaths then we have achieved something as it is extremely difficult to keep the number of deaths down and 20,000 is the bottom number. he says that the annual deaths from flu is about 13,000 so if we can get covid 19 deaths down to 20,000 we have achieved a huge result.
Zooicidal20/03/2020 00:12

It's not just deaths that will affect them unemployment will too. The US …It's not just deaths that will affect them unemployment will too. The US are estimating 20% unemployment when it's all over with, i imagine that we're expecting similar. Considering we're currently (or were a few months ago) sitting at 3.8% that's a huge extra amount of the population no longer able to afford or even be eligible for mortgages. For large parts of the country that's going to make it hard to sell houses.


the government is going to announce measures today to protect jobs so let's hope that is going to be good news.
House prices may stall, but I think mortgage lenders will try and help borrowers in some way. The last thing Banks need are repossessed houses on their books to sort out as well.
Toptrumpet20/03/2020 10:21

House prices may stall, but I think mortgage lenders will try and help …House prices may stall, but I think mortgage lenders will try and help borrowers in some way. The last thing Banks need are repossessed houses on their books to sort out as well.


That would be like pouring petrol on a fire to put it out. House prices are due a correction and there is alot of pain to come
May be?
Company close
Unemployment rate increase
People can't pay mortgage
Less demand
I think they won’t change much, there’s still demand and with govt securing 80% of wages will stop some people panicking.

People always need somewhere to live and there’s house shortages.

Supply and demand
Edited by: "jaks101" 20th Mar
jaks10120/03/2020 21:00

I think they won’t change much, there’s still demand and with govt sec …I think they won’t change much, there’s still demand and with govt securing 80% of wages will stop some people panicking. People always need somewhere to live and there’s house shortages. Supply and demand


when they announced brexit, property prices fell about 15% but it took a while to happen as the immediate effect was that people just didn't sell and stayed put rather than sell cheap. the majoirty of properties on sale are occupied so it is not as if they are lying around empty. if people just stayed put then the price stays stable.

i put my house in london on sale 2 months after brexit was announced and the price had only fallen by 5%. the 15% drop has happened slowly since then. so if property price is going to drop from this, it will take a while to take hold and the immediate effect will probably just a freeze on the market and everyone stays put.
Yes in London it affected but not the rest of the country.

In fact I just looked at the stats and house prices UK have increased 11% since Brexit referendum
Edited by: "jaks101" 20th Mar
jaks10120/03/2020 21:14

Yes in London it affected but not the rest of the country.In fact I just …Yes in London it affected but not the rest of the country.In fact I just looked at the stats and house prices UK have increased 11% since Brexit referendum


in london property prices have been going down since brexit, all be it slowly. it has started to go up again slowly over the last couple of months but this new blow will put a halt to that.
The stats say otherwise they have gone up from brexit referendum.


The doomers and groomers saying a 40% drop in property prices are living in cloud cuckoo land. People just will sit out and not sell
jaks10121/03/2020 12:26

The stats say otherwise they have gone up from brexit referendum.The …The stats say otherwise they have gone up from brexit referendum.The doomers and groomers saying a 40% drop in property prices are living in cloud cuckoo land. People just will sit out and not sell


it would only drop to that level if there were mass unemployment and people start to lose their homes through repossessions. the government is doing all they can to stop this happening with the fiscal intervention and this is hopefully a short disaster with a foreseeable end.

as soon as they get a vaccine or cure that will be an end of this crisis and so we should be grateful that we have science on our side to help us fight. and no doubt a lot of valuable lessons will be learnt from this outbreak for the future when we may have to face even more deadly viruses as the human race is more likely to be wiped out by a virus than by a third world war or hit by a comet.
Post a comment
Avatar
@
    Text

    Discussions

    Discussions

    Top Merchants