fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
Agreed, It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
When you say "price crash", presumably you mean "barely noticeable reduction in prices from ludicrously unaffordable to still ridiculously unaffordable".
@@ronin8926 The government probably will though. The only thing keeping the UK afloat in inflated property prices. If house prices drop, the banks go under
@@ChristopherVickers There's no magic money tree Chris! Why should the govt put big support in to a vanishing small number of people? most Tories are cash buyers or outright owners anyway!
@@ChristopherVickers that’s absolute nonsense……. British banks are stress tested by the Bank of England to cover the effects of devastating recession…… so a small change in house. Prices is not going to cause the banks to crash !! You’re probably not a web British banks are sat on something like £1.2 trillion of cash ….. this belongs to the shareholders, but it is there on the basis that it forms the Tier one capital ratio. They are required to hold to ensure that they do not fail. If there is a recession anything like that 2008 event. So your comments, I’m afraid are totally unrealistic !
@@ronin8926 And just like the oil tanker, the price "reduction" that is being touted is moving very, very slowly indeed, by nanoscopic amounts. Meanwhile, some tiny jerry-built two-up-two-down rabbit hutches that have just been built near where I live in a benighted little town in the middle of nowhere are on the market for half a million pounds each, FFS!
@@robertjones2053 Ah - I see. You mean "affordable to the tiny magic circle of people without serious money problems, who after all are the only people that matter". In that case: we've never had it so good!
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
@@TomD226 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
@lowcostfresh2266 Laurel Dell Sroufe, my financial advisor, is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field.
I was looking at houses the other day - I noticed one locally for £1.4m which shocked me as it was way overpriced for the area & the house in my experience. This made me delve deeper. I checked it's previous selling prices, it went for £600k in 2019, then £810k in 2021. How the owners or estate agent came up with a nearly 600k extra in 2 years is beyond me.
Yes, I have seen similar uplifts, of houses sold at around 250k 2021, now they want 350k. Crazy. I held my flat for 7 years and made 20k nominal profit
@@delsingh2577 yes, there must have been some value added for the price to increase that much. I bought a house in 2018 for £600k, spent over £300k on renovations and landscaping and have had it valued at around £950k. If I achieve that price, anyone looking at the bought prices will see a handsome profit, when the reality is that I barely broke even
House prices are still absurdly high compared to earnings. Eventually they will have to come back into balance but this wont happen until we build more houses. In most cases sellers are also buyers, so its all a wash. Wanting the house you are selling to have a sky high price and the one you are buying to be a bargain is just greedy and stupid.
Where are we going to put the 12 million houses we "need" to build, thanks to mass uncontrolled immigration over the last 25 years? Shall we find a large field, cut down all the crops, and build a new, bigger London?
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
farmers all over the country are selling up their land for building. You wouldnt believe the amount of money farmers in my area are making because of it. trust me those houses are going up. The only issue is that we are coming to a crashing point which means house prices will be down and thats good but theres a catch, they may become unaffordable if they cant put the houses on the market, if they see this they may decide to not build until the market picks up again so that profits are nicer. its fucked but part of the cycle @@fredmercury1314
We were in a position where we were keen to sell this summer (for various reasons). We purposefully put our house up for slightly less than the surrounding market in July - we didn't want to be in a position where we were chasing the market down. We sold within 3 weeks (subject to contract), while other houses nearby remain on the market and a similar house on the street is now reduced lower than we sold for (Rothwell, West Yorkshire). Saying that, our house is also in decent condition.
Same experience, priced slightly below what others were asking when some estate agents were recommending to push it over - sold quickly. Estate agents are struggling to get properties and they are pricing higher to get hold of the instruction. I viewed a house 8 months ago that was priced at least £200k over what it should have been given the state of the house, yes - it was a large property but absolutely no investment in the last 30 years - but its been on the market for 1.5 years (still on the market, just checked and they reduced it by £21k, some are a bit delusional).
Same here. In addition, we were rejected from a couple of houses, based on our offers being too low (and what we felt was reasonable). Those houses were then sold... but both came back on the market even less than our offers. . Although we've since moved and very happy 😊
Estate agents overestimate the price of the houses they sell after all they want the commission. When we sold our house in 2021, we got sent people to view our house who were not interested in our property and got a lot of viewers whose other houses fell through and we were not in a chain. It sold for 60k less than they valued it at. We got a fair price for the road and was the only house in the road with a drive that could accommodate 3 cars and a garage. That is what sold the house.
Deluded sellers and misleading agents abound. I've been looking to buy for the last 18 months where I'm currently living (within 1 mile in a west London borough). Properties constantly relisted and notified as a "new" listing rather than reduced. Almost always at the same original price. Over and over again. Prices rarely ever lower. In my street there are 106 properties. Many advertised, but since Jan 2020, only 3 have actually sold (most at 20% below asking - according to land registry data). I'm playing the long game to buy as an owner occupier with nothing to sell as a cash buyer. At some point, sellers are going to have to get real. Maybe only when the government finally admits that the UK is in Recession.
@@mkdons22 engaged conveyancer and ready to make a low offer on a property. All paperwork lined up with evidence of funds and proceedability. Suspect they won't take a 20% discount though. If not will just wait as prices fall further and more sellers enter the market.
@@EddieManningI'm seeing lots of previously SSTC or under offer properties re-appearing at the minute. Most same price & same agent but some with different agent at a higher price 😮 honestly makes you want to slap them 😂😂
Estate agents are also partly to blame here, as they tell sellers they can get a certain price for them in order to get the listing, we’ve been looking since May having sold ours and it’s the same case every time, yet it’s reduced a week or a month later. Also, houses that require a full renovation are trying to price their house based on done up houses that sold in the crazy lockdown era - usually because the seller thinks it’s worth it, hopefully there will be a wake up call soon
Not sure they'll ever wake up, unfortunately. The worst of the seven deadly syns is rearing it's ugly head big time & the best thing to do is laugh to yourself & ignore them. They'll soon get the message!
Estate agents are a MASSIVE reason prices are so high. I highlighted this in 2007 with overvaluing and watching everyone jump into an ocean if negative equity
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
So this week ive seen estate agents list 3 bed semi-detached for around £240k in my area even during the covid boom 180-200k max. I genuinely think they've fell over and hit their heads. Before the pandemic these houses were £140-160k depending on condition and plot size. They wont get it and these houses will just stick on the market making it worse for sellers overall.
@robertjones2053 we do have inflation but most normal people still have the same budgets. Friend of mine is convinced his 4 bed detached house has gone up in value by £100k in the last year, even if it has how much of that is inflation ?
@robertjones2053 yes well you don't mind inflation when your selling your house but when your paying for fuel and the sorts your moaning. Look people's wages haven't kept up with inflation. So 60000 price Increase is not realistic for 4 years
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
We have a few local estate agents who are mega overpricing properties at the moment & a few weeks later all houses are then reduced! It's crazy, they need to get real!
If there were to be a crash it will mainly be corporations who are either sitting on a bunch of cash or have access to cheap(er) loans will be snagging up the houses ... remember their goal, you will own nothing and be happy. So many neglected/poorly constructed houses (I call them money pits) on the market for what I call rediculous high prices ... in my area they still manage to get sold fairly quick.
I think in many areas, it came down a lot more than that. he does not have the right analysis data, he cannot access actual sale price until 6 months later.. Only the buyer/seller and agency will know. Some areas even increased but just a bit, less than before, despite I am not sure what is the accepted final sales price...
I recon people will hold things together till Christmas. Next spring is when they get really desperate, more mortgage resets and more properties on the market
@@robertjones2053 I meant 3 to 5 year fixed rates coming to an end and then people having to get a new mortgage deal or go on a standard variable rate . It's 100k households a months . A lot of those people will not have enough equity and good enough credit rating to get a good deal and will end up on variable rate which could easily double if not triple their monthly repayments
Me and my partner have given up on buying a property because of greedy sellers. We have put menay sensibly offers in and alwase been rejected. We have also put 1 offer in at close to asking and still rejected. Almost all the properties we have made offers on over the last year are still on the market and some have reduced to what we offered or just below. We have even tried 1 on auction witch rejected an offer and when we asked how much they would be likly to settle at we were told close to a house that didn't need any work. We are just gonna wait now and see how the market ends up.
Bastards! Fancy not selling to you through pure greed. Perhaps there were other reasons they chose not to sell? Probably the price of the new place they were thinking of buying.
They're all waiting for that one magical idiot to come along & give them asking or more. As frustrating as it is, you've made the right decision....... let karma sort them 😉
No such thing as a greedy seller,its there property and they can price it at what they like, something is worth what someone wants to pay, when I sell ill be out to get as much as I can,it's buisiness not charity, if it doesn't sell the sellers can bring down until it does, they may sell it then a year later it goes up 30/40K so what do they do go back and say I sold it to low,can I have another 20K please..
Exactly. I don't get this greedy seller argument either. Unless it is a forced sale the worst that can happen to a "greedy" seller is they fail to sell their property. They still have a roof over their head and it cost nothing but a bit of inconvenience to test the market out.@@simongb7897
Glad someone else is picking up on the manipulation that's going on. I've been tracking detailed stats since around March and something I picked up on is agents creating fake listings of properties they previously sold. They create a new listing and then a few minutes later mark them as sold. This will really be skewing the true market activity as far a Rightmoves stats go.
hmm.. interesting! could be since in my area, I have a nice and reasonably priced house I could not sell but I see a lot of STC in the recent months by other agencies that I know don't even work well.. I was wondering if the market is so bad and it should be logically, how come so many STCs, may be this is what they are doing,
I think there was a perception last week that because the Bank Of England didn't put up the official rate then the crisis is soon going to be over and interest rates will be falling soon. I noticed several local houses suddenly appearing as sold last Friday. What hasn't been widely reported is the price of gilts has actually risen since the B of E announcement because of the ramping up of QT. Gilts are the risk free rate that is the starting point for pricing in all sterling debt markets so the market rate could well increase not fall.
The BoE only froze interests rates because the FED Reserve did in US. This freeze is just a temporary breather, the US and BoE will raise again in the coming months
The ECB has been doing more QT and German house prices are down 9%. Yields at the long end of the curve in the UK have risen and the yield curve is now pretty flat. 30 year gilt 4.8% same as 2 year gilts. Yields are rising so prices are falling at the long end as a result of QT.
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
I listened to the comment that average sized properties in need of renovation are not selling due to the high cost of materials and labour (@ about 11 mins) I think it is sad that entry levels properties in need of basic decoration are not selling either because we live in a “do it for me” age, where basic skills are lacking and there is a reluctance to be bothered. You learn by getting some advice and then giving it a go.
People almost never buy a fixer upper as their main home. Buying a home is normally done through "the heart" and not necessarily "the head". If that was the case people never would have mortgages, logically.
People seem to just be addicted to buy now pay later. When I was house shopping, we were down to 2 properties. One had been newly renovated but not to my style and was around £35,000 more expensive. The other was in need of updating but was serviceable. I went for the cheaper one, knowing that if things went pear-shaped we'd still easily be able to cover the mortgage. 6 years later we're overpaying on the mortgage, I've taken a 3 month career break (living off savings) to renovate the kitchen and we're getting a new fitted kitchen that we paid for in cash (solid carcass not flat pack). I've not had to worry about money even when I was facing redundancy during the pandemic. In a few years' time, when our current fixed rate ends, we'll have a better loan to value ratio and will get a better deal than if we took the bigger mortgage. There's very little risk of us ending up in negative equity, which may well happen to many if this is the beginning of a housing crash.
They are not slow. They have created the bubble. They lie to sellers and get them exited about an inflated price for their house because they want the commission. Once someone hears they can get £500,000 for their house, its hard for them to accept less because it feels like they are losing money. I called an estate agent 2 months ago to book a viewing on a house and she refused to book it unless I showed bank details and proof I am able to buy the house because she has to much interest to waste time. I refused. The house is still up for sale now and reduced and that estate agent is calling people back asking if they want to book viewings. Estate agents cause property inflation from pure greed and recent generations are so used to financing everything that we have been willing to overpay for everything because we believe we can afford what we can't.
Thats their job to make more money, good for them but lenders are not generous anymore due to inflation and affordability which will take the house market eventually down.
I go on Right Move twice a day, early morning then around 8pm. I have seen so many properties with a reduced today listing, many of them have been sat there for months on end. They will fall a lot lower, only a fool feels the market is good right now. I am in Salisbury, and map the surrounding areas around 25 miles out from the city center.
@@andrewtaylor6737 Hi Andrew, yes I you are correct. Sometimes I look there too, and for crazy prices, Sandbanks and Evening Hill area. I think it will all fall apart soon, greedy agents promising absurd amounts to gullible people; it is starting to finally backfire. Cheers, Mark.
@@markbenson4263 Just be patient, it will happen. Even in my home town of affluent Broadstone things are changing, the sheep will wale up & realise it's too late. They are to busy watching the BBC, telling them the world is doing fine!
@@markbenson4263I am too, not going to wait forever but my feeling is once more people have to refinance at the end of their mortgage deals, we will see another 5% reduction
I saw estate agents putting up ads with properties that are not available with very low price tag only to attract traffic to their website and offer you other houses
Just sold a 2 bed in Berkshire 2 offers in first week, excepted one 3.75% below the asking price which was a sensible price but by no means a big drop, these houses not selling are just unrealistic prices in the first place
I did a added / reduced count for the area I look at and it was 46% reduced. Also the 20-30 properties I've saved are not selling. A few months ago they would quite quickly go Sold STC. Not now. Things are definitely stalling
RUclips property predictions: 2016 - there's going to be a house price crash 2017 - ditto 2018 - it's coming 2019 - any minute... 2020 - definitely this year 2021 - imminent... 2022 - it'll be this year 2023 - prices have dropped by 1% - massive crash! I was right, told you so! 🎉
I hope you’re not in the market of buying or selling your own home,I’m guessing you’re an estate agent who is relatively new in the business and never actually witnessed a downturn or recession
I hate to break this to you, but we live on a small island with limited housing stock with a growing population. This leads to and has lead to demand way outstripping supply. People have been saying a crash was imminent for the past 15 years. Prices rising and falling will of course occur, but some great crash is highly unrealistic.
@@ecoterrorist1402 Exactly, when prices fall people will put off moving, further reducing supply. Prices then go back up. I am not disputing that housing prices are very expensive, but some great price crash will not happen. Basic market forces will prevent that in the UK.
I assume rightmove data also lags behind natwest/halifax data by 4-5 months, as rightmove is new listing prices, and natwest/halifax is completions. i.e. the data for a house listed on rightmove would only show in natwest/halifax data after completion which takes ~5months
yep! 6 months when the register shares the last sales price. Except mortgage providers, Rightmove and Zoopla show older data, not recent sales... Some of these analyses are incorrect for that reason. 6 months make a big difference. I believe final sales prices crashed more than before.
What makes me giggle is what I call "The Fashion Delusion". This is where someone buys a house, puts in floor-to-ceiling windows, white render it, super new front door, continental feel by tiling the entire floor downstairs and a white plastic kitchen then pop it on the market for an absolutely stupid price. There are currently two houses in my area like this and they are not selling whereas other 'non continental' style properties are selling because they are priced sensibly.
Spot on....your paying for the salad dressing...not the salad but a salad dressing nobody wants apart from the perceived bourgeoisie clientele it is market at. Dress up a piece of crap it's still a piece of crap underneath.
You will get no extra money from a Home Report from this type of “improvements”, the bank will not consider it for a remortgage. You need extra bedrooms, bathrooms etc!
Hi Darren, just to let you know we have got an 18% reduction on a house we were interested in- (85k) it’s a lady moving into sheltered and her family listed it for her, the house for context was originally listed about 25-30% higher than pre Covid price, we know market likely to continue dropping but we are happy overall with the 18% off original asking price, we have been trying to buy for over 2 years but totally refused to join the FOMO and basically pay whatever seller asked - it’s happening, maybe not every seller willing to be realistic but some are, we can confirm that
I think that the cost of "entry level" level properties will hold up best. As you say, there is still demand there from downsizers and first time buyers that can get a mortgage. Also, I second what you say about condition driving sales. A four bedroom detached, up my road went up for sale last week at 300k. Looked very nice inside, but maybe 20k too much I thought. Sold, within a week. The demand for million pound + properties falling in value must surely be quite low though. Property is not the only market like this at the moment. I was looking at buying a particular type of sporty car. Increasingly more of that type on the market with every buyer advertising to sell at what they paid for it three years ago. None of these cars are selling. The penny has still not dropped for many sellers.
No panic here - Lake District. Anything decent is still selling within a week or two. No noticeable drop in prices either..... Definitely no £20k reductions, or even anything close to it..... Land is selling well here too. I've seen a few lots of farmland go in the last couple of weeks, at £200 and £300k a pop. Decent grazing land here in the Lakes, brings £10k an acre. One or two farmers/landowners topping up their retirement pots I think.
Prices are crashing around me i decided to take my house off e and ride this out, the absolute worst time to sell a mid-higher end property right now, prices keep dropping and loads of new properties keep coming on with not many selling
I've seen houses on rightmove listed by multiple agents at different prices! What to make of that I don't know. I also have a suspicion that I have seen some houses on rightmove claim to have been reduced recently but I am sure I have seen them at the same price before the alleged decrease. It is difficult to say for sure, but you kind of get a memory for houses that you see many times over several months and you get a niggling thought that they haven't been reduced at all. A lot of the cheaper stuff appears to be going straight to auction which means that at the lower end there is a squeeze between auction and the downsizers. No doubt you are correct about the pricier properties though.
@@volt8684 Probably your brain softened, and I'm here to tell you that you will be in for a rough awakening. This whole thing was built on cheap money, which is gone now...
Last Spring there was a lot of pent up demand that appeared locally around Easter which then quickly got whacked by the change in interest rates. I think in some areas there is a lot of pent up demand out there that could remerge if interest rates start nudging down next Spring. It could of course go the other way but it's an affordability problem affecting demand rather than a lack of demand.
Make sure you adjust for mix in your house price comparisons. What's 'mix' you ask? It's the composition of the types of property being sold. In a depressed market, you have a larger share of small, trashy, cheap properties being sold which depressed prices, and exaggerates the market's decline. Similarly, in a booming market, you have a larger share of top end quality properties which are more expensive, being sold. This exaggerates the increase in market prices. The reason for this is that the wealthy are less likely to be forced sellers, and they are more financially attuned, so would avoid putting a luxury home on the market in a depressed market, if they can avoid it.
obviously the best way to do it is to just give a realistic confidence weighted current price estiamte of every house in the country whether or not it has been sold or on the market only cchanges the confidence of the estimate but every house must be estimated
Think I’m just gonna stay renting and move around cheaper areas and invest in the stock market while it’s at a discount. Keep seeing people i know buying houses and it being a nightmare.
This is what I’m doing. I don’t want a giant mortgage debt, and f rather jump into this once in a lifetime opportunity to buy discount stocks. Plenty of stocks outside of tech are still at their covid lows so loads of bargains to be had!
I'm in the South West (Devon) and the dooer uppers that were flying off the shelves 2 years ago aren't shifting at all now, my assumption is the same as yours, people can't get the cheap loans anymore to flip them. However the houses that have had some work and are in good nick are the only ones that are selling within a couple of weeks now in my area. Otherwise everything is just reduction after reduction...
If Uk asking prices are £366k new listing they are £76k above the actual average sold price for July from ONS (which are completions from sales agreed in 2022, the height of the market). Even with price reductions, asking prices are still way above completed. No one on the side of house price crash seems to realise that sellers are not in as bad a shape as they hope they are. Yes buyers are put off by high rates and the general gloom, but sellers will only reduce their price if they HAVE to sell. And many don’t. I learned this the hard way during the last crash thinking I’d get a bargain and it took me 2 years to find a property as no one would drop to what I thought their houses were worth.
house prices are at least 100% overpriced in my area, imho. Two full time workers on minimum wage can't afford the most basic house. Landlording and house hoarding should be illegal.
Where I’m based, I’ve never seen so many higher value properties hit the market £650k+ Flats and smaller properties are flying off the market flooded with FTBs and down sizers. There are some bargains to be had if you’re after a larger property or looking in a premium area.
But are those properties still truly good value? If you need a mortgage and the prices continue to fall, I'm not sure they represent good value at this time.
> Its estate agents Among others... I have been saying for a long time, they are just parasites. Anyway, houses won't become affordable at any time soon. Then, wait, and you will see the problem with properties having EPC lower than C.
@@Brian-om2hh Well done, why do so few people see this. The price of a house is largely irrelevant what's important is the cost of borrowing and if you can afford it or not.
Saw a house on rightmove that had been reduced twice. Next timr i looked it was listed at reduced price but as "just listed"! They are still trying to play down any decrease
A house we were interested in which was being offered under modern auction method listed at £140k guide price was reduced today by £20k. We’re now interested as we need spare money to renovate it.
i think a good analogy is tipping point on itv. we have had a few one or two discs going over and we are wating for the 10 disc with 2x and m mystery to fall.
I’ve noticed there are a lot less houses coming to market in our area. We have been thinking of putting ours on the market but now decided against it. Interest rates will be having a big factor in the lack of sales. Can’t see them coming down in a long time.
I’m in Cambridge and there isn’t any sign of prices coming down at all, If they do? It will still be over priced, and the auctioneers here are so arrogant
I'm still saying Supply 'n' Demand will tell us where the true market is? The starter homes 1&2 Bedroom are not going to be affected, mid-range it will be a tough sell, top end 750K + the prices will be squeezed. most investors are snapping up homes that either are 5 beds or new for HMO's
My feeling also. 1 and 2 or a managble 3 bedrooms, will not be too badly affected, it is the 4 bed plus that will get very sticky. I see this "downsizing" in so many aspects...vehicles for instance have probably reached their optimum size. A car dealer told me recently how a 2 door rather than 4 door vehicle is often now asked for....less weight, better economy!
Supply 'n' Demand is just nonsense, not in the corrupted financial system. In my area, I can see lots of houses for sale and not selling. Nothing special, range 200 to 300k. So, where is the famous demand? Apparently is outstripping the supply big time. Yes, some flats/houses are selling due to downsizing and hope this is just a small dip. Also, I understand that some people just get rid of fiat currency notes backed by "people's trust" and nothing else, and convert that into something tangible, even if that might lose the “value”. But the real estate bubble is about to pop in the UK as it is already happening in other parts of the world. The bond market is kept together on cello tape. Why the gov. was putting the advert on the radio a couple of months ago that your pension is safe....hmmm.
@@watk-qx1mk Supply 'n' Demand is just nonsense, so why did bog rolls disappear in covid times. S'n'D rentals in my area have a bidding war as 20+ people turn up for one home. Again S'n'D we all have to live somewhere. So where is your area then? As 200k and flat/houses not selling don't add up.
@@ecoterrorist1402 Not possible to explain it in depth here. In the nutshell - long term experiment called “low interest rate” + all sort of “helicopter money” pumped into the system. But this is just one of the factors that you have seen 20 people bidding for the same house / flat. At this moment of time the money supply is limited and a lot of people from the queue is gone; transaction volume is going down. The cash buyer has the limit as well. Let see what the central planners has in store for plebs/minions. The house market is just one of the assets which were inflated in many places across the world. There is something more interesting going on now in the field of an international law…who knows we might be “happy and own nothing”.
@richardlongmuir8348 both really. I'm looking at the fall in prices and also offered a number of estate agents cash buy offers. They are not interested and im only going between 5-10k lower than asking price with my offers
With a budget of about £350k (cash buyer once sold after all fees taken into account) I am wondering what price of property today I can be looking at. For example, could I be eyeing up a £450k property with the thought of getting it for £350k? Thinking out aloud.
Hi James,My feeling for what it’s worth it that this is going to be a very regional situation and some are going to be hit harder that others so that makes your question very difficult to answer……maybe make yourself an expert in the markets you’re looking at
@@richardlongmuir8348 Regional, of course. Selling up in London in exchange for the coast; either Dorset, Devon, or East Sussex. I know the Bournemouth market well, and aside from two properties I can think of spanning a 2+ year time period the reductions are just pathetic dribbles with those dribbles not being wiped up (not selling and just sitting there like a stunned mullet). I say reductions, one property has been on the market since mid June for £275k and STILL not sold and no reduction. A year or so ago that property would have been snapped up.
Are you noticing quiet a number of vacant properties in that area? Reckon it’s people selling second homes,holiday lets etc getting rid of non essential debt
Great video @honestMoney please can you educate buyers about using sq footage rather than how many bedrooms a property has (which gives no indication of size)
Pricing wording? What works best ? Fixed - asking ? Offers over ( +1p ?) OIRO ? Sealed bids ? Auction ? Every reduction is dangerous. It leaves a footprint online. Punters think : " They must be desperate. There must something wrong with it . If we wait the price will come down." Watch out for liars who pretend to be buying ( including homes for cash parasite ) only for the " sale " to collapse at the last stage. Then a mate of theirs comes forward with a pathetic low price ( as a new unconnected buyer ) thinking a seller will accept the silly price . Everyone demands a discount ( I WANT ) so seller must pay for it ? Buyers are liars. Until there's a deposit,cleared in the bank ,it's all dreams & chat.
If the housing market really recovers - that means prices coming back down out of the sky for everyone, and staying down - then that can only be a good thing long-term.
Houses are cheaper than a bag of chips at a vending machine these days! If prices drop any further, we'll have folks picking up a house with their morning coffee and upgrading to a mansion for their afternoon snack! 🏡☕😄
Went to view a house the other day. Wouldn't budge on price. I said to the vendor that everywhere in town is reducing, I might just wait it out. It's a nice house but in this climate it's too much. The seller took it off instead. Some people aren't willing to accept it
@@robertjones2053 I'm not in a rush to buy in this market. I know they don't have to give me a discount. But in all fairness they are the ones missing out. They are the ones with the mortgage they can't afford and fucking them over. Houses come and go
Hopefully you’re correct re folk not wanting shabby or old fashioned places because I believe there’s a negative effect caused by tv makeover / home improvement shows not demonstrating the sheer hassle of having builders & associated trades in your home let alone the ‘ cripple tradesman’ effect where guys block pavements with vehicles when there’s ample parking around the block. Opposite us the guy bought a 1960s detached & his neighbours have spent 3 years of noise, dust , huge trucks making deliveries…building work is difficult, dirty , very expensive & disruptive & maybe Joe public is beginning to appreciate this !
Hi,I’m not sure it’s right saying 1st time buyers are coming in for the lower priced homes,the data is showing that new mortgages have fallen off the scale
I fail to see the relevance of a video looking at asking prices? Is the key data not actual sold prices this year vs last? That’s what people are willing to pay, not what the seller would like them to pay
Well, seems like it will drop further given the foreign investors are not doing well themselves and want to consolidate wealth back in their main country. All in all a good video and review, many thanks for the insight!
Going to auction with a very nice 2 bedroom miners cottage to get rid of. It should sell ok. Rather than looking at the big picture, look at the lots of little pictures and "intra" movement. We've just come out of the usual flat spell of summer and things are still dead. New builds are down. But loads of people turning up needing houses. People escaping areas which they don't recognise. I'm hopeful. However, the long term picture is utterly screwed
Buying an old property which needs to update every single thing, new plaster boards for ceilings with cracks to flooring, big chimneys occupying plenty space and causing damp at some point and heat losses… need plenty time to renovate it specially when builders need in advance just for booking, really need a big pot of money and lots of hassle in all that process so looking for a renovated property just need some decorations and move in… would be a better choice.
The financial storm is coming. Interest rates are going up . The BofE will be printing loads a money and the cost of oil will take off . Another thing with Rightmove, look at the amount of properties for sale that are vacant? Looks like the sauce is working 🤔
@@tonycheung5532who told u that? You realise we're back to a long term average rate now right. This should be averagely affordable so why are people moaning, unless you've been bingeing on the free money and thought you'll never pay it back? More like 4% by 2025. Higher for longer is what they will go with but the FED can't be second guessed. All out collapse and a possible debt reprieve followed by new currency withing two years is also possible
@@tonycheung5532 How do economists always get it so wrong? We are told the health of our economy is based on growth , people going out spending money is the economic activity the economy needs , which in turn leads to growth. Now they are telling us we are spending too much which is causing inflation. That increasing wages are inflationary, yet the government would get higher tax revenues from increasing wages . Economists, Forecasters and Bankers always get it wrong. Interest rates are going up.
Vacant properties are generally Landlords (plus a few probate) sellers who have made a killing over the past 15 years. They are probably quite relaxed about price as they have made so much money already and if it does not sell they can simply rent it out again as the rental market is totally nuts.
I'm seeing sellers change EA after a few week or using multiple EA's to advertise. I'm in that boat where If I see something really good, thats move in ready and just about priced right then I'll be happy to make offer....Thats a little less below asking
Sellers are using multiple agents as say one buyer has got into Sold STC with an EA but then gets interested in the sellers property then they have an option to select another EA and avoid the same EA . One property falls through and the seller gets a buyer.
I got my house for £28,000. in 1996. Now 2 doors down was up for £400,000. It sold then fell through and went back on the market for £320,000. But it was over priced.
In Bristol they havent got the memo. They are still asking for more than 300.000 for a not reformed 3 bedroom house. Basically 11 years of medium salary after taxes.
My HMO in east London makes me 5k a month and my agent advised me if i want to sell to ask for 800k. Wy tf would i do that when the house makes me 60k a year. 5 years ago they advised me to sell for 550k since then the house made me nearly 300k plus 250k in value but it doesnt make any sense to sell for that money anyway so i think i will wait and get my 60k a year plus the increase in value, im only 34 right now and no mortgage.
I think that prices fall off a cliff when interest rates drop. People will look to cash out at the top and buy with a lower mortgage. Everybody will copy and you will get reverse gazulping, with sellers looking to undercut one another, secure their capital and buy a new house with a lower rate. When the government starts offering incentives then it is the bottom. Happened in 2008 as well.
I know, but if rates are going down, you have a large amount of capital in your house, and you want to sell and remortgage then it will enter a spiral. Most mortgages are transferrtable, but not all. Trading down to a smaller house can mean that you cannot transfer your mortgage.@@matthewsemple
Don't go for the highest value, I did but it was a gamble and I was prepared for it to sell lower, do your own research in the area, look at your property dispassionately, what is good and bad about it then compare with recent sold prices.
The problem here is one of an echo chamber, if you're not long property you will love this and feed into the echo chamber and find data points to fit the narrative. If an estate agent is doing their job correct, every house listed should have at least 1 downward revision as if you list for 1m and sell for 1m they haven't got you the best price, they should have tried 1.1 first! Equally if your house sells first week, they haven't got you the best price! As for a full blown crash, it's funny as in 2008 we had the same doom sayers and it never happened as all that will happen is the sellers will refuse to go lower, the buyers will complain "but, you should as we are in a property crash" and nothing will trade until the market regains strength at which point all the people who complained that they should have been able to pick up a bargain will complain how unfair it it house prices are at new record highs... As we say in the markets, trend is your friend...
Question - surely the main reason houses aren’t selling, is that people with fixed mortgage rates are sitting tight, as not to loose the benefit they currently have; as buying a new house might move moving from a 1.5% rate to a 5% rate (as in my case. Hence sitting tight for the time being…….
When we bought our house in 2008 we had 3 years left on a 10 year fixed at a decent rate. Nationwide let us keep that mortgage & we took out a second one for the extra that we were borrowing. Meant we had two mortgages but was never a problem! Not sure if you can still do that now.
In my humble opinion the analysis on this channel is very good Just one thing I want to add which is people should always keep in mind that with house prices there is always a time lag in either direction.
My seller reduced by 6%. That 2-bed renovated house was on the market for 4 months and he tried twice to sell it before me. As soon as I felt it was the right price, I immediately jumped on it. The process was over in 2 months. Some people still want to buy, despite the crisis. Times have changed. If you are still going to make some profit, and want to sell quickly, drop your prices.
• Follow me on Twitter for my latest thoughts: twitter.com/darrenthedegen
Do you think this could happen in Australia.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
Agreed, It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
When you say "price crash", presumably you mean "barely noticeable reduction in prices from ludicrously unaffordable to still ridiculously unaffordable".
@@ronin8926 The government probably will though. The only thing keeping the UK afloat in inflated property prices. If house prices drop, the banks go under
@@ChristopherVickers There's no magic money tree Chris! Why should the govt put big support in to a vanishing small number of people? most Tories are cash buyers or outright owners anyway!
@@ChristopherVickers that’s absolute nonsense……. British banks are stress tested by the Bank of England to cover the effects of devastating recession…… so a small change in house. Prices is not going to cause the banks to crash !!
You’re probably not a web British banks are sat on something like £1.2 trillion of cash ….. this belongs to the shareholders, but it is there on the basis that it forms the Tier one capital ratio. They are required to hold to ensure that they do not fail. If there is a recession anything like that 2008 event.
So your comments, I’m afraid are totally unrealistic !
@@ronin8926 And just like the oil tanker, the price "reduction" that is being touted is moving very, very slowly indeed, by nanoscopic amounts. Meanwhile, some tiny jerry-built two-up-two-down rabbit hutches that have just been built near where I live in a benighted little town in the middle of nowhere are on the market for half a million pounds each, FFS!
@@robertjones2053 Ah - I see. You mean "affordable to the tiny magic circle of people without serious money problems, who after all are the only people that matter". In that case: we've never had it so good!
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
@@TomD226 Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
@lowcostfresh2266 Laurel Dell Sroufe, my financial advisor, is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field.
I was looking at houses the other day - I noticed one locally for £1.4m which shocked me as it was way overpriced for the area & the house in my experience. This made me delve deeper.
I checked it's previous selling prices, it went for £600k in 2019, then £810k in 2021. How the owners or estate agent came up with a nearly 600k extra in 2 years is beyond me.
Errr IMMIGRATION
@@shabbos-goy9407😂
Yes, I have seen similar uplifts, of houses sold at around 250k 2021, now they want 350k. Crazy. I held my flat for 7 years and made 20k nominal profit
Maybe it was bought cheap renovated, extended etc then put back on the market for a profit?
@@delsingh2577 yes, there must have been some value added for the price to increase that much. I bought a house in 2018 for £600k, spent over £300k on renovations and landscaping and have had it valued at around £950k. If I achieve that price, anyone looking at the bought prices will see a handsome profit, when the reality is that I barely broke even
House prices are still absurdly high compared to earnings. Eventually they will have to come back into balance but this wont happen until we build more houses. In most cases sellers are also buyers, so its all a wash. Wanting the house you are selling to have a sky high price and the one you are buying to be a bargain is just greedy and stupid.
Where are we going to put the 12 million houses we "need" to build, thanks to mass uncontrolled immigration over the last 25 years? Shall we find a large field, cut down all the crops, and build a new, bigger London?
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
farmers all over the country are selling up their land for building. You wouldnt believe the amount of money farmers in my area are making because of it. trust me those houses are going up. The only issue is that we are coming to a crashing point which means house prices will be down and thats good but theres a catch, they may become unaffordable if they cant put the houses on the market, if they see this they may decide to not build until the market picks up again so that profits are nicer. its fucked but part of the cycle @@fredmercury1314
We were in a position where we were keen to sell this summer (for various reasons). We purposefully put our house up for slightly less than the surrounding market in July - we didn't want to be in a position where we were chasing the market down. We sold within 3 weeks (subject to contract), while other houses nearby remain on the market and a similar house on the street is now reduced lower than we sold for (Rothwell, West Yorkshire). Saying that, our house is also in decent condition.
Same experience, priced slightly below what others were asking when some estate agents were recommending to push it over - sold quickly. Estate agents are struggling to get properties and they are pricing higher to get hold of the instruction. I viewed a house 8 months ago that was priced at least £200k over what it should have been given the state of the house, yes - it was a large property but absolutely no investment in the last 30 years - but its been on the market for 1.5 years (still on the market, just checked and they reduced it by £21k, some are a bit delusional).
Same here. In addition, we were rejected from a couple of houses, based on our offers being too low (and what we felt was reasonable). Those houses were then sold... but both came back on the market even less than our offers. . Although we've since moved and very happy 😊
@@MADSAUCENET good to hear you're all moved. We're still in the process. Hoping things are smooth from here 🤞
My neighbour sold his house three days after it went up for sale.
Estate agents overestimate the price of the houses they sell after all they want the commission. When we sold our house in 2021, we got sent people to view our house who were not interested in our property and got a lot of viewers whose other houses fell through and we were not in a chain. It sold for 60k less than they valued it at. We got a fair price for the road and was the only house in the road with a drive that could accommodate 3 cars and a garage. That is what sold the house.
Deluded sellers and misleading agents abound. I've been looking to buy for the last 18 months where I'm currently living (within 1 mile in a west London borough). Properties constantly relisted and notified as a "new" listing rather than reduced. Almost always at the same original price. Over and over again. Prices rarely ever lower. In my street there are 106 properties. Many advertised, but since Jan 2020, only 3 have actually sold (most at 20% below asking - according to land registry data). I'm playing the long game to buy as an owner occupier with nothing to sell as a cash buyer. At some point, sellers are going to have to get real. Maybe only when the government finally admits that the UK is in Recession.
Put some low offers in test how desperate the sellers are
@@mkdons22 engaged conveyancer and ready to make a low offer on a property. All paperwork lined up with evidence of funds and proceedability. Suspect they won't take a 20% discount though. If not will just wait as prices fall further and more sellers enter the market.
Lol agents try to keep price up effortlessly ahhahaha
@@EddieManningI'm seeing lots of previously SSTC or under offer properties re-appearing at the minute. Most same price & same agent but some with different agent at a higher price 😮 honestly makes you want to slap them 😂😂
Property prices only go up LOL :)
Estate agents are also partly to blame here, as they tell sellers they can get a certain price for them in order to get the listing, we’ve been looking since May having sold ours and it’s the same case every time, yet it’s reduced a week or a month later. Also, houses that require a full renovation are trying to price their house based on done up houses that sold in the crazy lockdown era - usually because the seller thinks it’s worth it, hopefully there will be a wake up call soon
They should be regulated as other countries are!
Not sure they'll ever wake up, unfortunately. The worst of the seven deadly syns is rearing it's ugly head big time & the best thing to do is laugh to yourself & ignore them. They'll soon get the message!
@@Bubbles77418 so true. X
Estate agents are a MASSIVE reason prices are so high. I highlighted this in 2007 with overvaluing and watching everyone jump into an ocean if negative equity
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
So this week ive seen estate agents list 3 bed semi-detached for around £240k in my area even during the covid boom 180-200k max. I genuinely think they've fell over and hit their heads. Before the pandemic these houses were £140-160k depending on condition and plot size. They wont get it and these houses will just stick on the market making it worse for sellers overall.
@robertjones2053 we do have inflation but most normal people still have the same budgets. Friend of mine is convinced his 4 bed detached house has gone up in value by £100k in the last year, even if it has how much of that is inflation ?
@robertjones2053 yes well you don't mind inflation when your selling your house but when your paying for fuel and the sorts your moaning. Look people's wages haven't kept up with inflation. So 60000 price
Increase is not realistic for 4 years
@@robertjones2053Have you sold your house then?
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
theyre rinsing it while they can. they wont be that price in 2025
We have a few local estate agents who are mega overpricing properties at the moment & a few weeks later all houses are then reduced! It's crazy, they need to get real!
@@Paul-zu2hd you are absolutely right!
Agents massively overprice then people can't sell
If there were to be a crash it will mainly be corporations who are either sitting on a bunch of cash or have access to cheap(er) loans will be snagging up the houses ... remember their goal, you will own nothing and be happy.
So many neglected/poorly constructed houses (I call them money pits) on the market for what I call rediculous high prices ... in my area they still manage to get sold fairly quick.
Property prices went up 300% and came Down half a percent, and we have a property crash
I think in many areas, it came down a lot more than that. he does not have the right analysis data, he cannot access actual sale price until 6 months later.. Only the buyer/seller and agency will know. Some areas even increased but just a bit, less than before, despite I am not sure what is the accepted final sales price...
Don’t confuse him he’s confused enough now.
I recon people will hold things together till Christmas. Next spring is when they get really desperate, more mortgage resets and more properties on the market
I guess he means more fixed term deals ending, not sure how that equates to "resets"
@robertjones2053
I know, it's just guesswork. Fixed deals end every day, maybe it's a principle of spring being the annual peak of sales 🤷🏿
I agree!
@@robertjones2053 I meant 3 to 5 year fixed rates coming to an end and then people having to get a new mortgage deal or go on a standard variable rate . It's 100k households a months . A lot of those people will not have enough equity and good enough credit rating to get a good deal and will end up on variable rate which could easily double if not triple their monthly repayments
@@robertjones2053 we have had low rates since 2009 and 100k people a month are coming of fixed deals. Spring is prime selling season
Me and my partner have given up on buying a property because of greedy sellers. We have put menay sensibly offers in and alwase been rejected. We have also put 1 offer in at close to asking and still rejected. Almost all the properties we have made offers on over the last year are still on the market and some have reduced to what we offered or just below. We have even tried 1 on auction witch rejected an offer and when we asked how much they would be likly to settle at we were told close to a house that didn't need any work. We are just gonna wait now and see how the market ends up.
Bastards! Fancy not selling to you through pure greed. Perhaps there were other reasons they chose not to sell? Probably the price of the new place they were thinking of buying.
They're all waiting for that one magical idiot to come along & give them asking or more. As frustrating as it is, you've made the right decision....... let karma sort them 😉
No such thing as a greedy seller,its there property and they can price it at what they like, something is worth what someone wants to pay, when I sell ill be out to get as much as I can,it's buisiness not charity, if it doesn't sell the sellers can bring down until it does, they may sell it then a year later it goes up 30/40K so what do they do go back and say I sold it to low,can I have another 20K please..
@@simongb7897 could you contradict yourself anymore in one statement? 🤣🤣 Idiot!
Exactly. I don't get this greedy seller argument either. Unless it is a forced sale the worst that can happen to a "greedy" seller is they fail to sell their property. They still have a roof over their head and it cost nothing but a bit of inconvenience to test the market out.@@simongb7897
Glad someone else is picking up on the manipulation that's going on. I've been tracking detailed stats since around March and something I picked up on is agents creating fake listings of properties they previously sold. They create a new listing and then a few minutes later mark them as sold. This will really be skewing the true market activity as far a Rightmoves stats go.
Crazy! They should be held accountable, marked as fraudulent
hmm.. interesting! could be since in my area, I have a nice and reasonably priced house I could not sell but I see a lot of STC in the recent months by other agencies that I know don't even work well.. I was wondering if the market is so bad and it should be logically, how come so many STCs, may be this is what they are doing,
I think there was a perception last week that because the Bank Of England didn't put up the official rate then the crisis is soon going to be over and interest rates will be falling soon. I noticed several local houses suddenly appearing as sold last Friday.
What hasn't been widely reported is the price of gilts has actually risen since the B of E announcement because of the ramping up of QT. Gilts are the risk free rate that is the starting point for pricing in all sterling debt markets so the market rate could well increase not fall.
The BoE only froze interests rates because the FED Reserve did in US. This freeze is just a temporary breather, the US and BoE will raise again in the coming months
The ECB has been doing more QT and German house prices are down 9%. Yields at the long end of the curve in the UK have risen and the yield curve is now pretty flat. 30 year gilt 4.8% same as 2 year gilts. Yields are rising so prices are falling at the long end as a result of QT.
@@Pluto6661shooting up? How much higher will they go?
@@Littletime839expect 6% mortgages by the new year.
Mainland Chinese money laundering using real estate all around the world has priced all the locals out. The only was to fix this will be bloody revolution. Something alone the lines of 1917 Russia without the communism.
I listened to the comment that average sized properties in need of renovation are not selling due to the high cost of materials and labour (@ about 11 mins)
I think it is sad that entry levels properties in need of basic decoration are not selling either because we live in a “do it for me” age, where basic skills are lacking and there is a reluctance to be bothered. You learn by getting some advice and then giving it a go.
It’s because building material cost has done up. Nothing to do with basic skills
People almost never buy a fixer upper as their main home. Buying a home is normally done through "the heart" and not necessarily "the head". If that was the case people never would have mortgages, logically.
People seem to just be addicted to buy now pay later. When I was house shopping, we were down to 2 properties. One had been newly renovated but not to my style and was around £35,000 more expensive. The other was in need of updating but was serviceable. I went for the cheaper one, knowing that if things went pear-shaped we'd still easily be able to cover the mortgage. 6 years later we're overpaying on the mortgage, I've taken a 3 month career break (living off savings) to renovate the kitchen and we're getting a new fitted kitchen that we paid for in cash (solid carcass not flat pack). I've not had to worry about money even when I was facing redundancy during the pandemic. In a few years' time, when our current fixed rate ends, we'll have a better loan to value ratio and will get a better deal than if we took the bigger mortgage. There's very little risk of us ending up in negative equity, which may well happen to many if this is the beginning of a housing crash.
Rightmove data really doesn’t carry any weight anymore as it’s all about asking prices which are largely irrelevant right now
Correct, I have stopped looking at Rightmove data years ago as it's pointless. Only transaction prices and volume are worth analysis.
@@robertjones2053 only land register gives sold prices and it’s actually about 7 months out of date,the sold prices are all historical
@@robertjones2053 RM doesn’t have any access to actual price agreed or completed data
A trend is a trend regardless of which data set is used. Variances in asking prices is an indication of the market.
@@Finderskeepers. agreed however if it’s so out of touch then it really doesn’t offer any help to folk who are trying to make sensible decisions
Estate agents are so slow at accepting there is a bubble, hence housing bubbles take a long time to burst
They are not slow. They have created the bubble. They lie to sellers and get them exited about an inflated price for their house because they want the commission. Once someone hears they can get £500,000 for their house, its hard for them to accept less because it feels like they are losing money.
I called an estate agent 2 months ago to book a viewing on a house and she refused to book it unless I showed bank details and proof I am able to buy the house because she has to much interest to waste time. I refused. The house is still up for sale now and reduced and that estate agent is calling people back asking if they want to book viewings.
Estate agents cause property inflation from pure greed and recent generations are so used to financing everything that we have been willing to overpay for everything because we believe we can afford what we can't.
Thats their job to make more money, good for them but lenders are not generous anymore due to inflation and affordability which will take the house market eventually down.
Mate its not the agents its the sellers, unless they really have to sell sellers will always be in denial.
How do you see the price reductions ? I dont see that on rightmove
I go on Right Move twice a day, early morning then around 8pm. I have seen so many properties with a reduced today listing, many of them have been sat there for months on end. They will fall a lot lower, only a fool feels the market is good right now. I am in Salisbury, and map the surrounding areas around 25 miles out from the city center.
Same here in Poole & surrounding areas, the big drops haven't even started yet!
@@andrewtaylor6737 Hi Andrew, yes I you are correct. Sometimes I look there too, and for crazy prices, Sandbanks and Evening Hill area. I think it will all fall apart soon, greedy agents promising absurd amounts to gullible people; it is starting to finally backfire. Cheers, Mark.
Same in Poole/Bmth, still waiting for prices to fall enough to make a difference.
@@markbenson4263 Just be patient, it will happen.
Even in my home town of affluent Broadstone things are changing, the sheep will wale up & realise it's too late. They are to busy watching the BBC, telling them the world is doing fine!
@@markbenson4263I am too, not going to wait forever but my feeling is once more people have to refinance at the end of their mortgage deals, we will see another 5% reduction
I saw estate agents putting up ads with properties that are not available with very low price tag only to attract traffic to their website and offer you other houses
Just sold a 2 bed in Berkshire 2 offers in first week, excepted one 3.75% below the asking price which was a sensible price but by no means a big drop, these houses not selling are just unrealistic prices in the first place
I did a added / reduced count for the area I look at and it was 46% reduced. Also the 20-30 properties I've saved are not selling. A few months ago they would quite quickly go Sold STC. Not now. Things are definitely stalling
RUclips property predictions:
2016 - there's going to be a house price crash
2017 - ditto
2018 - it's coming
2019 - any minute...
2020 - definitely this year
2021 - imminent...
2022 - it'll be this year
2023 - prices have dropped by 1% - massive crash! I was right, told you so! 🎉
I hope you’re not in the market of buying or selling your own home,I’m guessing you’re an estate agent who is relatively new in the business and never actually witnessed a downturn or recession
Predictions are always difficult, especially regarding the future..
@@richardlongmuir8348 no, but thank you for your guesses.
@@user-xu5vl5th9n I don't have a crystal ball either. This reminds me of the people predicting every year that the Queen Mum was going to die.
2024 - they start going up again, should have been quicker!
I hate to break this to you, but we live on a small island with limited housing stock with a growing population. This leads to and has lead to demand way outstripping supply. People have been saying a crash was imminent for the past 15 years. Prices rising and falling will of course occur, but some great crash is highly unrealistic.
That would not suit his narrative, I have been banging on for months, we all have to live somewhere? Supply 'n' Demand
@@ecoterrorist1402 Exactly, when prices fall people will put off moving, further reducing supply. Prices then go back up. I am not disputing that housing prices are very expensive, but some great price crash will not happen. Basic market forces will prevent that in the UK.
Hey mate,
Hoping you could explain the chrome extension you mentioned and what is does?
Cheers
I assume rightmove data also lags behind natwest/halifax data by 4-5 months, as rightmove is new listing prices, and natwest/halifax is completions. i.e. the data for a house listed on rightmove would only show in natwest/halifax data after completion which takes ~5months
Good question!
yep! 6 months when the register shares the last sales price. Except mortgage providers, Rightmove and Zoopla show older data, not recent sales... Some of these analyses are incorrect for that reason. 6 months make a big difference. I believe final sales prices crashed more than before.
Thank you for bringing the Property listing Chrome Extension to my attention, I love it.
What makes me giggle is what I call "The Fashion Delusion". This is where someone buys a house, puts in floor-to-ceiling windows, white render it, super new front door, continental feel by tiling the entire floor downstairs and a white plastic kitchen then pop it on the market for an absolutely stupid price. There are currently two houses in my area like this and they are not selling whereas other 'non continental' style properties are selling because they are priced sensibly.
It's called modern living
Spot on....your paying for the salad dressing...not the salad but a salad dressing nobody wants apart from the perceived bourgeoisie clientele it is market at. Dress up a piece of crap it's still a piece of crap underneath.
You will get no extra money from a Home Report from this type of “improvements”, the bank will not consider it for a remortgage.
You need extra bedrooms, bathrooms etc!
@@ojbeez5260 you can't polish a turd but you can paint it with glitter and make it sparkle 👍
@@c3pno I like that. Better than my expression, haha! true!
0.4% is NOT a "crash". That is 4K off 1Million, hardly the sky falling.
Wow ..its starting to slip now ... Christmas is the time to get the real deal
Christmas 2024/2025
@@georgec2894yeah that's what I'm thinking also next year will be a bloodbath. It won't stop until the base rate gets down to 2% minimum
@georgec2894 yeah 😎
In 2024
Because timing the market never fails
Hi Darren, just to let you know we have got an 18% reduction on a house we were interested in- (85k) it’s a lady moving into sheltered and her family listed it for her, the house for context was originally listed about 25-30% higher than pre Covid price, we know market likely to continue dropping but we are happy overall with the 18% off original asking price, we have been trying to buy for over 2 years but totally refused to join the FOMO and basically pay whatever seller asked - it’s happening, maybe not every seller willing to be realistic but some are, we can confirm that
High end houses are always slow movers, the crappy houses stay on Rightmove, good ones still get listed and bought fast, i seen it myself
I think that the cost of "entry level" level properties will hold up best. As you say, there is still demand there from downsizers and first time buyers that can get a mortgage. Also, I second what you say about condition driving sales. A four bedroom detached, up my road went up for sale last week at 300k. Looked very nice inside, but maybe 20k too much I thought. Sold, within a week. The demand for million pound + properties falling in value must surely be quite low though. Property is not the only market like this at the moment. I was looking at buying a particular type of sporty car. Increasingly more of that type on the market with every buyer advertising to sell at what they paid for it three years ago. None of these cars are selling. The penny has still not dropped for many sellers.
Yes decent entry level homes are still going more / less immediately if priced realistically
No panic here - Lake District. Anything decent is still selling within a week or two. No noticeable drop in prices either..... Definitely no £20k reductions, or even anything close to it..... Land is selling well here too. I've seen a few lots of farmland go in the last couple of weeks, at £200 and £300k a pop. Decent grazing land here in the Lakes, brings £10k an acre. One or two farmers/landowners topping up their retirement pots I think.
almost as if prolonged artificially low interest rates did wonders for the holiday house market..
Prices are crashing around me i decided to take my house off e and ride this out, the absolute worst time to sell a mid-higher end property right now, prices keep dropping and loads of new properties keep coming on with not many selling
Yup you missed the boat.
Yeah, agree, you are too late. Probably will not be able to get again the peak 2022 value in your lifetime...
@@SycAamore you don't know who old they are. They could well live for another 5 years.
The large high maintenance/ overhead properties will suffer most...the era of cheap gas/ electric will not be returning...renewables a long way off.
You guys don't even know my situation I haven't missed the boat I don't even care 😅 I love where I live
I've seen houses on rightmove listed by multiple agents at different prices! What to make of that I don't know. I also have a suspicion that I have seen some houses on rightmove claim to have been reduced recently but I am sure I have seen them at the same price before the alleged decrease. It is difficult to say for sure, but you kind of get a memory for houses that you see many times over several months and you get a niggling thought that they haven't been reduced at all.
A lot of the cheaper stuff appears to be going straight to auction which means that at the lower end there is a squeeze between auction and the downsizers. No doubt you are correct about the pricier properties though.
What was the name of the extension you use to see the portal juggling?
People were saying the same thing 20 years ago. At most there might be a small dip, that's it. Nothing much will change about the long term trend.
He’s got his own agenda though hasn’t he 😂😂
@@Calamancotrading I don't think he's going to shift the market anymore than the many crypto shills could keep that dead end afloat.
Totally agree. Never crashes, merely softens
@@volt8684 Probably your brain softened, and I'm here to tell you that you will be in for a rough awakening. This whole thing was built on cheap money, which is gone now...
You need to wake up.
im on the hunt to buy and facing something similar - no desire to have to do up a house, its too expensive at the moment
Last Spring there was a lot of pent up demand that appeared locally around Easter which then quickly got whacked by the change in interest rates. I think in some areas there is a lot of pent up demand out there that could remerge if interest rates start nudging down next Spring. It could of course go the other way but it's an affordability problem affecting demand rather than a lack of demand.
Make sure you adjust for mix in your house price comparisons. What's 'mix' you ask? It's the composition of the types of property being sold.
In a depressed market, you have a larger share of small, trashy, cheap properties being sold which depressed prices, and exaggerates the market's decline. Similarly, in a booming market, you have a larger share of top end quality properties which are more expensive, being sold. This exaggerates the increase in market prices.
The reason for this is that the wealthy are less likely to be forced sellers, and they are more financially attuned, so would avoid putting a luxury home on the market in a depressed market, if they can avoid it.
obviously the best way to do it is to just give a realistic confidence weighted current price estiamte of every house in the country whether or not it has been sold or on the market only cchanges the confidence of the estimate but every house must be estimated
Think I’m just gonna stay renting and move around cheaper areas and invest in the stock market while it’s at a discount.
Keep seeing people i know buying houses and it being a nightmare.
This is what I’m doing. I don’t want a giant mortgage debt, and f rather jump into this once in a lifetime opportunity to buy discount stocks. Plenty of stocks outside of tech are still at their covid lows so loads of bargains to be had!
I'm in the South West (Devon) and the dooer uppers that were flying off the shelves 2 years ago aren't shifting at all now, my assumption is the same as yours, people can't get the cheap loans anymore to flip them. However the houses that have had some work and are in good nick are the only ones that are selling within a couple of weeks now in my area. Otherwise everything is just reduction after reduction...
noone has the money to do up the dooer uppers LOL
@@nameundefinedname5307Too true, materials and labout have skyrocketed and so many "chancers" thinking they are builders
If Uk asking prices are £366k new listing they are £76k above the actual average sold price for July from ONS (which are completions from sales agreed in 2022, the height of the market). Even with price reductions, asking prices are still way above completed. No one on the side of house price crash seems to realise that sellers are not in as bad a shape as they hope they are. Yes buyers are put off by high rates and the general gloom, but sellers will only reduce their price if they HAVE to sell. And many don’t. I learned this the hard way during the last crash thinking I’d get a bargain and it took me 2 years to find a property as no one would drop to what I thought their houses were worth.
house prices are at least 100% overpriced in my area, imho. Two full time workers on minimum wage can't afford the most basic house. Landlording and house hoarding should be illegal.
whats basic then?
are you in the posh bit of London
Where I’m based, I’ve never seen so many higher value properties hit the market £650k+
Flats and smaller properties are flying off the market flooded with FTBs and down sizers.
There are some bargains to be had if you’re after a larger property or looking in a premium area.
But are those properties still truly good value? If you need a mortgage and the prices continue to fall, I'm not sure they represent good value at this time.
I'm also looking for such properties, but I wouldn't touch the market yet. Patience is required right now...
@@Pluto6661 south east
About time it starts to fall down and become affordable...
Its estate agents who to blame for over price inflated properties in the first place!
Unless you have cash, how will it become more affordable to buy a house if it costs more to borrow the money? 🤦♂️
@@ianpaul8881Lower deposit! The main thing stopping young people from getting on the ladder
> Its estate agents
Among others... I have been saying for a long time, they are just parasites.
Anyway, houses won't become affordable at any time soon. Then, wait, and you will see the problem with properties having EPC lower than C.
@@ianpaul8881 Exactly. Those cheaper houses will cost more in higher monthly mortgage payments! So no real saving at all......
@@Brian-om2hh Well done, why do so few people see this.
The price of a house is largely irrelevant what's important is the cost of borrowing and if you can afford it or not.
That last house you were on, down a cool £1.25 mill - 27.8%, ouch someone just lost a load of imaginary wealth there!
Sounds like they had to write a reality cheque...
Saw a house on rightmove that had been reduced twice. Next timr i looked it was listed at reduced price but as "just listed"! They are still trying to play down any decrease
There'll be a big trigger from elsewhere behind it. A crash to trigger the decline.
True...no one can foresee the "black swan" event.
A house we were interested in which was being offered under modern auction method listed at £140k guide price was reduced today by £20k. We’re now interested as we need spare money to renovate it.
Please let us know the hammer price
@@robertjones2053Spot on. By the time you pay the premium , then VAT on premium it gets ridiculous
i think a good analogy is tipping point on itv. we have had a few one or two discs going over and we are wating for the 10 disc with 2x and m mystery to fall.
London and the South East has margin to drop 5% or so.
All other regions will stay more or less stable, I'd say.
I’ve noticed there are a lot less houses coming to market in our area. We have been thinking of putting ours on the market but now decided against it. Interest rates will be having a big factor in the lack of sales. Can’t see them coming down in a long time.
NatWest, Virgin Money and Yorkshire building society all reduced their rates last week..
Your analysis is great. If I ever see you I will buy a beer or 2. Keep up the great work 👏🍻
I’m in Cambridge and there isn’t any sign of prices coming down at all, If they do? It will still be over priced, and the auctioneers here are so arrogant
I lived in Cambridge for 5 years, and I'm 99% sure you'll be outbid by Chinese buyers anyway.
I'm still saying Supply 'n' Demand will tell us where the true market is?
The starter homes 1&2 Bedroom are not going to be affected, mid-range it will be a tough sell, top end 750K + the prices will be squeezed.
most investors are snapping up homes that either are 5 beds or new for HMO's
My feeling also. 1 and 2 or a managble 3 bedrooms, will not be too badly affected, it is the 4 bed plus that will get very sticky. I see this "downsizing" in so many aspects...vehicles for instance have probably reached their optimum size. A car dealer told me recently how a 2 door rather than 4 door vehicle is often now asked for....less weight, better economy!
Supply 'n' Demand is just nonsense, not in the corrupted financial system. In my area, I can see lots of houses for sale and not selling. Nothing special, range 200 to 300k. So, where is the famous demand? Apparently is outstripping the supply big time. Yes, some flats/houses are selling due to downsizing and hope this is just a small dip. Also, I understand that some people just get rid of fiat currency notes backed by "people's trust" and nothing else, and convert that into something tangible, even if that might lose the “value”. But the real estate bubble is about to pop in the UK as it is already happening in other parts of the world. The bond market is kept together on cello tape. Why the gov. was putting the advert on the radio a couple of months ago that your pension is safe....hmmm.
@@watk-qx1mk Supply 'n' Demand is just nonsense, so why did bog rolls disappear in covid times. S'n'D
rentals in my area have a bidding war as 20+ people turn up for one home. Again S'n'D
we all have to live somewhere.
So where is your area then? As 200k and flat/houses not selling don't add up.
@@ecoterrorist1402 Not possible to explain it in depth here. In the nutshell - long term experiment called “low interest rate” + all sort of “helicopter money” pumped into the system. But this is just one of the factors that you have seen 20 people bidding for the same house / flat. At this moment of time the money supply is limited and a lot of people from the queue is gone; transaction volume is going down. The cash buyer has the limit as well. Let see what the central planners has in store for plebs/minions. The house market is just one of the assets which were inflated in many places across the world. There is something more interesting going on now in the field of an international law…who knows we might be “happy and own nothing”.
Not seeing it in the Midlands. 140k two bedroom terraced house is still 140k
I suppose someone's got to live there! 😂😂
@@andrewtaylor6737 I was thinking the same about London. But unfortunately people don't live long there before they are stabbed
@@lesbianalien3435 Atleast you taken my comment in good humour, I'm originally from the West Midlands but now on the sunny south coast in Dorset.
Are you just looking at asking prices
@richardlongmuir8348 both really. I'm looking at the fall in prices and also offered a number of estate agents cash buy offers. They are not interested and im only going between 5-10k lower than asking price with my offers
10:46 underrated observation
With a budget of about £350k (cash buyer once sold after all fees taken into account) I am wondering what price of property today I can be looking at. For example, could I be eyeing up a £450k property with the thought of getting it for £350k? Thinking out aloud.
Yeah
Hi James,My feeling for what it’s worth it that this is going to be a very regional situation and some are going to be hit harder that others so that makes your question very difficult to answer……maybe make yourself an expert in the markets you’re looking at
@@richardlongmuir8348 Regional, of course. Selling up in London in exchange for the coast; either Dorset, Devon, or East Sussex. I know the Bournemouth market well, and aside from two properties I can think of spanning a 2+ year time period the reductions are just pathetic dribbles with those dribbles not being wiped up (not selling and just sitting there like a stunned mullet). I say reductions, one property has been on the market since mid June for £275k and STILL not sold and no reduction. A year or so ago that property would have been snapped up.
Are you noticing quiet a number of vacant properties in that area? Reckon it’s people selling second homes,holiday lets etc getting rid of non essential debt
@healthiswealth6797 at the moment
Great video @honestMoney please can you educate buyers about using sq footage rather than how many bedrooms a property has (which gives no indication of size)
Just the beginning, country is heading for catastrophic economic meltdown
Call me pessimistic but I think it's even worse than that. Try 'collapse of Western Civilisation'
I still see no signs of panic in my area. Quite a few have "sold" signs.
Heard that it is going to down by another 10% in 2024. Don’t buy any property now, keep renting.
Yes this appears to be the direction this is headed
and 10% could easily become 20, 30 or 40%, once the bubble bursts it's a big bang.
Oh you “heard?!”
And guess what the landlord does with your rent money? They pay the mortgage on the property with it......
@@Brian-om2hh only poor landlords do that. Most landlords just pocket the cash and use it as income.
Pricing wording?
What works best ?
Fixed - asking ?
Offers over ( +1p ?)
OIRO ?
Sealed bids ?
Auction ?
Every reduction is dangerous.
It leaves a footprint online.
Punters think :
" They must be desperate.
There must something wrong with it .
If we wait the price will come down."
Watch out for liars who pretend to be buying ( including homes for cash parasite ) only for the " sale " to collapse at the last stage. Then a mate of theirs comes forward with a pathetic low price ( as a new unconnected buyer ) thinking a seller will accept the silly price .
Everyone demands a discount ( I WANT ) so seller must pay for it ?
Buyers are liars.
Until there's a deposit,cleared in the bank ,it's all dreams & chat.
If the housing market really recovers - that means prices coming back down out of the sky for everyone, and staying down - then that can only be a good thing long-term.
Trouble is cost of materials snx labour to build is inflating even if land is worth less
Not for the people who own multiple houses looking to sell 😂
@@Pwizz8 LOL. That's short-term, and they were hoarding houses so I have little sympathy. No-one should own 2+ houses until everyone else has 1.
Houses are cheaper than a bag of chips at a vending machine these days! If prices drop any further, we'll have folks picking up a house with their morning coffee and upgrading to a mansion for their afternoon snack! 🏡☕😄
@@mrtickleuk I 100% agree, this world does make some sick
Still pretty high I saw something go for 20k over ask in Dulwich because there are hardly any houses in that area
Went to view a house the other day. Wouldn't budge on price. I said to the vendor that everywhere in town is reducing, I might just wait it out. It's a nice house but in this climate it's too much. The seller took it off instead. Some people aren't willing to accept it
@@robertjones2053 I'm not in a rush to buy in this market. I know they don't have to give me a discount. But in all fairness they are the ones missing out. They are the ones with the mortgage they can't afford and fucking them over. Houses come and go
No way should you be able to reduce the price and then change it back up again with no timing ban. wow.
@4.25 - If I remember correctly, pre-pandemic, the majority of these houses weren't >£500k, particularly in Chatham
Hopefully you’re correct re folk not wanting shabby or old fashioned places because I believe there’s a negative effect caused by tv makeover / home improvement shows not demonstrating the sheer hassle of having builders & associated trades in your home let alone the ‘ cripple tradesman’ effect where guys block pavements with vehicles when there’s ample parking around the block. Opposite us the guy bought a 1960s detached & his neighbours have spent 3 years of noise, dust , huge trucks making deliveries…building work is difficult, dirty , very expensive & disruptive & maybe Joe public is beginning to appreciate this !
Hi,I’m not sure it’s right saying 1st time buyers are coming in for the lower priced homes,the data is showing that new mortgages have fallen off the scale
You ain't seen nothing yet!
Can you elaborate on how you see the price history portal juggling please
I fail to see the relevance of a video looking at asking prices? Is the key data not actual sold prices this year vs last? That’s what people are willing to pay, not what the seller would like them to pay
Well, seems like it will drop further given the foreign investors are not doing well themselves and want to consolidate wealth back in their main country.
All in all a good video and review, many thanks for the insight!
Prices still t❤oo high for crappy houses
Going to auction with a very nice 2 bedroom miners cottage to get rid of. It should sell ok. Rather than looking at the big picture, look at the lots of little pictures and "intra" movement. We've just come out of the usual flat spell of summer and things are still dead. New builds are down. But loads of people turning up needing houses. People escaping areas which they don't recognise. I'm hopeful. However, the long term picture is utterly screwed
Stop buying as an investment, Settle down and live in the damn thing. The thinking is all wrong!
Buying an old property which needs to update every single thing, new plaster boards for ceilings with cracks to flooring, big chimneys occupying plenty space and causing damp at some point and heat losses… need plenty time to renovate it specially when builders need in advance just for booking, really need a big pot of money and lots of hassle in all that process so looking for a renovated property just need some decorations and move in… would be a better choice.
The financial storm is coming. Interest rates are going up . The BofE will be printing loads a money and the cost of oil will take off .
Another thing with Rightmove, look at the amount of properties for sale that are vacant?
Looks like the sauce is working 🤔
May you tell me more about the interest rates? From what I know is that FED will cut the rate to 3% in the future.
@@tonycheung5532who told u that? You realise we're back to a long term average rate now right. This should be averagely affordable so why are people moaning, unless you've been bingeing on the free money and thought you'll never pay it back? More like 4% by 2025. Higher for longer is what they will go with but the FED can't be second guessed. All out collapse and a possible debt reprieve followed by new currency withing two years is also possible
@@tonycheung5532 How do economists always get it so wrong?
We are told the health of our economy is based on growth , people going out spending money is the economic activity the economy needs , which in turn leads to growth.
Now they are telling us we are spending too much which is causing inflation.
That increasing wages are inflationary, yet the government would get higher tax revenues from increasing wages .
Economists, Forecasters and Bankers always get it wrong.
Interest rates are going up.
Yes i have noticed an increasing number of for sale properties empty and offered "chain free". 🤔
Vacant properties are generally Landlords (plus a few probate) sellers who have made a killing over the past 15 years. They are probably quite relaxed about price as they have made so much money already and if it does not sell they can simply rent it out again as the rental market is totally nuts.
how do you get that price change history up??
Whats the point in reductions, as you pay a 6 percent more interest now.
Literally xd
I'm seeing sellers change EA after a few week or using multiple EA's to advertise.
I'm in that boat where If I see something really good, thats move in ready and just about priced right then I'll be happy to make offer....Thats a little less below asking
Sellers are using multiple agents as say one buyer has got into Sold STC with an EA but then gets interested in the sellers property then they have an option to select another EA and avoid the same EA . One property falls through and the seller gets a buyer.
I got my house for £28,000. in 1996. Now 2 doors down was up for £400,000. It sold then fell through and went back on the market for £320,000. But it was over priced.
In Bristol they havent got the memo. They are still asking for more than 300.000 for a not reformed 3 bedroom house. Basically 11 years of medium salary after taxes.
My HMO in east London makes me 5k a month and my agent advised me if i want to sell to ask for 800k. Wy tf would i do that when the house makes me 60k a year. 5 years ago they advised me to sell for 550k since then the house made me nearly 300k plus 250k in value but it doesnt make any sense to sell for that money anyway so i think i will wait and get my 60k a year plus the increase in value, im only 34 right now and no mortgage.
What is the extension (Crome) which you use to track changes in prices?
Property Log
Estate Agent wants to sell property at any price to get some commission on the sale in.
I think that prices fall off a cliff when interest rates drop. People will look to cash out at the top and buy with a lower mortgage. Everybody will copy and you will get reverse gazulping, with sellers looking to undercut one another, secure their capital and buy a new house with a lower rate. When the government starts offering incentives then it is the bottom. Happened in 2008 as well.
You know you don't have to move to change your rate?
I know, but if rates are going down, you have a large amount of capital in your house, and you want to sell and remortgage then it will enter a spiral. Most mortgages are transferrtable, but not all. Trading down to a smaller house can mean that you cannot transfer your mortgage.@@matthewsemple
Economic pressures are also going to come into play,there’s some tough times ahead
@@matthewsempleSpoilsport 😁
There is no price crash. There is no lack of demand. There is only more expensive mortgages.
Don't go for the highest value, I did but it was a gamble and I was prepared for it to sell lower, do your own research in the area, look at your property dispassionately, what is good and bad about it then compare with recent sold prices.
The problem here is one of an echo chamber, if you're not long property you will love this and feed into the echo chamber and find data points to fit the narrative. If an estate agent is doing their job correct, every house listed should have at least 1 downward revision as if you list for 1m and sell for 1m they haven't got you the best price, they should have tried 1.1 first! Equally if your house sells first week, they haven't got you the best price!
As for a full blown crash, it's funny as in 2008 we had the same doom sayers and it never happened as all that will happen is the sellers will refuse to go lower, the buyers will complain "but, you should as we are in a property crash" and nothing will trade until the market regains strength at which point all the people who complained that they should have been able to pick up a bargain will complain how unfair it it house prices are at new record highs... As we say in the markets, trend is your friend...
Question - surely the main reason houses aren’t selling, is that people with fixed mortgage rates are sitting tight, as not to loose the benefit they currently have; as buying a new house might move moving from a 1.5% rate to a 5% rate (as in my case. Hence sitting tight for the time being…….
When we bought our house in 2008 we had 3 years left on a 10 year fixed at a decent rate. Nationwide let us keep that mortgage & we took out a second one for the extra that we were borrowing. Meant we had two mortgages but was never a problem! Not sure if you can still do that now.
Only one letter O in lose.....
In my humble opinion the analysis on this channel is very good
Just one thing I want to add which is people should always keep in mind that with house prices there is always a time lag in either direction.
My seller reduced by 6%. That 2-bed renovated house was on the market for 4 months and he tried twice to sell it before me. As soon as I felt it was the right price, I immediately jumped on it. The process was over in 2 months. Some people still want to buy, despite the crisis. Times have changed. If you are still going to make some profit, and want to sell quickly, drop your prices.