House Prices falling

[globaldiver]

Isn’t that a good thing?

[royal white]

1 minute ago, globaldiver said:

Isn’t that a good thing?

Brexit benefit 😉

[Winchester White]

3 minutes ago, globaldiver said:

Isn’t that a good thing?

I would say so, yes.

However they aren't any more affordable due to the increase in interest rates.

[globaldiver]

5 minutes ago, Winchester White said:

I would say so, yes.

However they aren't any more affordable due to the increase in interest rates.

Not yet, but that should improve, with falls in value over a sustained period, I hope.

I can’t understand the weeping and wailing when it seems better for young folks.

[globaldiver]

7 minutes ago, Winchester White said:

I would say so, yes.

However they aren't any more affordable due to the increase in interest rates.

Oh, and interest rates go up and down.
 

In my view they were maintained too low for too long and that was a significant factor in the rise in prices.

[Winchester White]

7 minutes ago, globaldiver said:

Oh, and interest rates go up and down.
 

In my view they were maintained too low for too long and that was a significant factor in the rise in prices.

Exactly this, rates being so low for so long must have contributed to the rise in prices.

It seems the middle classes in the shires love house prices going up.

[Not in Crawley]

If it helps the rental sector (where prices are still rising) then yes. Although it won't, and certainly not here.

[Jol_BWFC]

I want to move to a bigger house in the next few years, so works for me. As it will for those wanting to get on the housing ladder. Not the same for those in their “forever home”.

[CambridgeBWFC]

The potential issue is that whilst interest rates were low, people took out large and long mortgages, often at high LTV rates. This absolutely caused rapid inflation in the market but now puts a lot of people at risk of negative equity.  Couple that with help to buy schemes coming off their interest free period and rising interest rates and lots of people are likely to be finding things unmanageable. It could turn ugly very quickly.

But it was a problem staring us in the face and lots of people have over stretched, ignoring warnings or the possibility of prices/interest rates rising. Yes lenders are partly to blame but there is shared responsibility.

 

 

Edited March 2, 2023 by CambridgeBWFC

[royal white]

7 minutes ago, Jol_BWFC said:

I want to move to a bigger house in the next few years, so works for me. As it will for those wanting to get on the housing ladder. Not the same for those in their “forever home”.

But Surley your house price is going to go down? Or do you have access to other funds? 

[CambridgeBWFC]

4 minutes ago, royal white said:

But Surley your house price is going to go down? Or do you have access to other funds? 

But that assumes that everything goes down at the same rate. Generally smaller, starter properties will hold their value than larger properties.

I am in a similar position and would like to move up the ladder, I can afford to but not without stretching my mortgage to something beyond what I was comfortable with. I can absorb additional interest payments a little, but reducing value make the amount needed to borrow a bit more palatable. 

 

 

[Jol_BWFC]

9 minutes ago, royal white said:

But Surley your house price is going to go down? Or do you have access to other funds? 

If my house is worth £100k and I want to buy somewhere for £150k, I need to find an extra £50k.

If prices drop 10% across the board, mine is worth £90k but the new place is only worth £135k. I now only need to find a further £45k.

It’s over simplified, but that’s the principle.

Edited March 2, 2023 by Jol_BWFC

[mickbrown]

1 hour ago, globaldiver said:

Not yet, but that should improve, with falls in value over a sustained period, I hope.

I can’t understand the weeping and wailing when it seems better for young folks.

Because they aren't young folk

[Mounts Kipper]

isnt the fall currently 1%, it is hardly worth mentioning. 

[Tonge moor green jacket]

2 minutes ago, Mounts Kipper said:

isnt the fall currently 1%, it is hardly worth mentioning. 

Aye.

Not significant, yet.

[globaldiver]

24 minutes ago, mickbrown said:

Because they aren't young folk

Quite 

[mickbrown]

2 minutes ago, globaldiver said:

Quite 

From a selfish point of view, my next and last move will be a downsize and release capital job.

But that capital will more than likely go to the nipper to get her on the ladder.

So basically, fuck knows what I'm supposed to want .😃

[Sweep]

2 hours ago, globaldiver said:

Isn’t that a good thing?

It depends on your situation, at some point in the next 15/20 years I might look to sell up and buy more properties abroad - so I'd rather prices in the UK kept increasing.....and those in the EU fell 🙂

2 hours ago, globaldiver said:

Not yet, but that should improve, with falls in value over a sustained period, I hope.

I can’t understand the weeping and wailing when it seems better for young folks.

Perhaps some people aren't that fussed about it being "better" for younger folks

 

 

If prices fell a lot, and it put people into negative equity, then that's obviously not a good thing. As @Mounts Kippersays though, if we're talking about a drop of 1%, then it's really not worth mentioning at all

[globaldiver]

10 minutes ago, mickbrown said:

From a selfish point of view, my next and last move will be a downsize and release capital job.

But that capital will more than likely go to the nipper to get her on the ladder.

So basically, fuck knows what I'm supposed to want .😃

Aye.

I guess you’ll prioritise the needs of your daughter, whatever that is at the time! If everything drops in value (all else being equal), you’d have less to give her, but it will be worth more to her. So, a score draw.

[royal white]

1 hour ago, Jol_BWFC said:

If my house is worth £100k and I want to buy somewhere for £150k, I need to find an extra £50k.

If prices drop 10% across the board, mine is worth £90k but the new place is only worth £135k. I now only need to find a further £45k.

It’s over simplified, but that’s the principle.

Unfortunately it doesn’t always work like that. I suppose location is a big factor 

[only1swanny]

My homes gone up in value at least 80 - 90k since I bought it..

I'll cope with a 1% drop

Houses are silly money atm, we made 60k on our last house.. 

I'd like to say I'm good at it but it's luck and right place,  right time.  

That said, I'm only leaving this house in a wooden box. 

[leigh white]

My council rent as been raised up by six quid in April by those lousy Wiggin cunts.

[green genie]

14 hours ago, mickbrown said:

From a selfish point of view, my next and last move will be a downsize and release capital job.

But that capital will more than likely go to the nipper to get her on the ladder.

So basically, fuck knows what I'm supposed to want .😃

Stuck in the middle of the changing economic reality.

Want to give the yoofs something to get onto property ladder (and get them out of here) instead of having to rent and not be able to save,

we aren’t inheriting anything imminently in way our parents did and way social care and saga holidays are going will be little left.

Scary when you think you might have to listen to the adverts during Tenable about equity release.

Christ knows what it will be like for next generation. 

[Spider]

Apparently Bolton is bucking the trend and prices are still going up, albeit at a slower rate.

The UK housing market is totally mental anyway. I deal with a lot of the big house bashers like Taylor Wimpey and Barratts etc.. Was told the rough actual cost to build a 4 bed detached in a decent location to them is around the £180k mark (materials, Labour, land) as an average across the country.

Same house they’ll sell for £400k here and a million in Surrey.

Barking mad

[globaldiver]

29 minutes ago, Spider said:

Apparently Bolton is bucking the trend and prices are still going up, albeit at a slower rate.

The UK housing market is totally mental anyway. I deal with a lot of the big house bashers like Taylor Wimpey and Barratts etc.. Was told the rough actual cost to build a 4 bed detached in a decent location to them is around the £180k mark (materials, Labour, land) as an average across the country.

Same house they’ll sell for £400k here and a million in Surrey.

Barking, mad

Is it really bad in Barking?