House Prices

[Italy2]

Hiya

We are thinking of buying our first house this year. We have saved up a 5% deposit and have checked our affordability with different banks online. We have also previously obtained a mortgage in principle but the sale fell through. We both have full-time employments and stable jobs.

I am wondering whether house prices would increase or decrease post lockdown? We are continuing to save but just worried in case house prices increase drastically later in the year.

We are happy to wait until the economy is stabilized..

Is anyone else in a similar situation? Do you guys think whether house prices would increase or decrease?

Thank you

 

[Its_Me]

What part of the country are you in? I’ve heard London prices will decrease but at the moment everything is speculation and I wouldn’t even think about buying x

 

[Italy2]

What part of the country are you in? I’ve heard London prices will decrease but at the moment everything is speculation and I wouldn’t even think about buying x

Based in Midlands. I have heard about London but it's all so confusing!

 

[Ninteydayfiance]

I’m in a similar situation and I’ve been listening to podcasts and watching YouTube videos of property experts to see what the predictions are and they all say different things which isn’t helpful! I’m in the north west but also have a property to sell before we buy our new house so hoping prices don’t go down too much as my current house will also drop! Not a great situation to be in I know!

 

[Yel]

I mean there's no chance they'll increase and anyone that says they will probably is trying to offload their own overpriced houses.

"Property expert" is pretty meaningless. Estate agents is just sales job with a very low barrier of entry that attracts people looking to make a quick buck. And that ghastly Kirsty makes a cheeky offer of 1000 under the asking price for a 400k flat in penge has no qualifications other than interior design. Phil's "property empire" it consisted of 2 full-time staff close to the last downturn. I can't stand those two and the untold misery they've caused by millions

 

[Bronx]

I’m in a similar position. We’re looking to sell our home down south and buy something up north but the buying part won’t happen until we’ve rented somewhere for a while. Prices around here don’t seem to have changed and new properties have gone up and sold by the look of Right Move. Any estate agents or brokers on here who can give an impartial view, or is it too early still?

 

[Tublet83]

Interestingly all the houses around me (including next door) that were sold subject to contract before lockdown haven’t dropped out and are now going through. Will be interested to see if they have negotiated a reduced value or not (I live up north but locally in an area of high demand)

 

[rosieflowers]

I mean there's no chance they'll increase and anyone that says they will probably is trying to offload their own overpriced houses.

"Property expert" is pretty meaningless. Estate agents is just sales job with a very low barrier of entry that attracts people looking to make a quick buck. And that ghastly Kirsty makes a cheeky offer of 1000 under the asking price for a 400k flat in penge has no qualifications other than interior design. Phil's "property empire" it consisted of 2 full-time staff close to the last downturn. I can't stand those two and the untold misery they've caused by millions

Their cheeky offers are rubbish aren't they I never understand how they get so many people to buy or offer on houses they show them, do they show them ones they're already interested in?!

OP just to add my two cents, if you're looking for a home you can be in long term, like 10-15 years, and you can comfortably afford the mortgage, don't worry too much about small anticipated dips in prices. It should be a home not a financial venture. Also places like the Midlands aren't as vulnerable to huge rises and falls like London which is just crazy town for house prices.

Good luck, it's great to finally own your own home, you will love it

 

[Yel]

Prices around here don’t seem to have changed and new properties have gone up and sold by the look of Right Move. Any estate agents or brokers on here who can give an impartial view, or is it too early still?

Prices won't fall yet, everything is frozen while furlough and mortgage holidays at on. Maybe come the autumn they will. Sellers aren't quick to drop the asking prices, especially not in the UK where people have a real issues selling a house for anything less than it was worth at the height of a market.

If I was buying now I'd gazunder by at least 10%.

There might be a few sales that actually complete at the moment, put any pent-up demand will soon be exhausted.

 

[Keiffers pipe]

I got messaged by the agent that one were interested in had its priced dropped by 15k they also wanted me to make some sort of commitment to it after only having a virtual tour .

 

[Tublet83]

I got messaged by the agent that one were interested in had its priced dropped by 15k they also wanted me to make some sort of commitment to it after only having a virtual tour .

As if! I would never ever trust an estate agent with a virtual tour!!

 

[Moe]

I was convinced the market would crash 2008/2009 but they started printing money and dropped interest rates. There are so many vested interests with property portfolios all in high places this government or their spouses and the last labour government. The labour mp who did a tweet about white van man her husband has a large portfolio.
I find it disgusting that some people own hundreds of properties and young people will never be able to buy a home where they were born.
I hope the market crashes but I’m far too jaded and cynical now.
Not sure if I’m allowed to say this but I used to enjoy housepricecrash back in the day. We got it so wrong it’s mostly tumbleweed there now.

 

[TheWitchIsBack]

It’s obviously very difficult to say what might happen to property prices at this stage, but I think a good indication of the anticipated changes is the behaviour of the mortgage lenders. Each area will differ and places with overinflated prices will suffer most but I would imagine places that have seen slow and steady growth since 2009 will manage to stabilise relatively quickly.

There are a lot of lenders still lending at 90% (And some at 95%) so if they were expecting a significant dip I reckon this would be limited at a lower LTV. Banks can’t afford to have mortgage holders in negative equity because they would then have to manage quite a significant risk that would have implications bank wide.

I wouldn’t worry too much, but I would definitely say the power to negotiate a really good price is in your hands as I think a lot of sellers will be so worried about not being able to sell that they’ll be more open to a lower offer.

 

[JoeBloggs]

I work in property, I don’t think there will be a crash. People can not afford to lose money on their houses so either they will stay put and the market won’t move or they will hold out for the right offer. Negative equity does no one any favours!

I do think there will be wriggle room, especially if people are downsizing or selling an inherited house.

I know a lot of people may extend if they can’t get the figure now. We’ve made about £75/100k on our house in 3 years. We want another bed and bathroom and by the time you take into moving costs, stamp duty etc and the fact we love our area and neighbours we will probably extend and stay for the next 10 years.

I’ve been trying to convince my parents to move but stamp duty is stopping them even though they can buy bigger for cheaper where we are.

 

[Bronx]

I got messaged by the agent that one were interested in had its priced dropped by 15k they also wanted me to make some sort of commitment to it after only having a virtual tour .

Don’t do it. You need to look at it in person to check circuit boards and boilers and cracks, that you won’t see in a virtual tour.

 

[Keiffers pipe]

Don’t do it. You need to look at it in person to check circuit boards and boilers and cracks, that you won’t see in a virtual tour.

I absolutely wouldn't even consider it.

 

[TheMeg]

What’s everyone’s thoughts on the housing market post COVID? Obviously no one can predict the future but wondering if there is likely to be a housing crash? Recession has been confirmed I believe.

Just seen there is already a thread on this please delete if needed.

 

[TheWitchIsBack]

Don’t do it. You need to look at it in person to check circuit boards and boilers and cracks, that you won’t see in a virtual tour.

Yeah, would never in a million years encourage this. In Scotland there’s additional protection with a home report but even that would still make me nervous.

 

[Italy2]

I mean there's no chance they'll increase and anyone that says they will probably is trying to offload their own overpriced houses.

"Property expert" is pretty meaningless. Estate agents is just sales job with a very low barrier of entry that attracts people looking to make a quick buck. And that ghastly Kirsty makes a cheeky offer of 1000 under the asking price for a 400k flat in penge has no qualifications other than interior design. Phil's "property empire" it consisted of 2 full-time staff close to the last downturn. I can't stand those two and the untold misery they've caused by millions

Thanks for your reply. I agree that I don't see how prices can agree considering how lots of people have lost their jobs due to covid.

What’s everyone’s thoughts on the housing market post COVID? Obviously no one can predict the future but wondering if there is likely to be a housing crash? Recession has been confirmed I believe.

Just seen there is already a thread on this please delete if needed.

Well the house prices did fall during the 2008 recession so there might be a decrease in the house prices again?

 

[Boutros-Boutros Ghali]

I think you might get a slight drop, if someone really needs to sell their home but unless they do homeowners will just sit tight, people aren’t prepared to lose large amounts selling up unless they have to, so there’ll be a shortage of homes for sale which could push prices up.....but who knows to be honest, if you find a house you like and you can afford it and can get a mortgage then go for it and get a home you love.