Housing market downbeat

[SammyInnit]

Increasing numbers of surveyors reported seeing house prices fall rather than increase in December, with a net balance of 19% seeing falls rather than rises.

https://www.bbc.co.uk/news/business-46891187

Aside from the negative spin I really don't see this as a bad thing.

My guess would be fewer people are entering the market hoping to spend less.

A house at £160k ten years ago averages £230k today. That's pretty obscene. As much as we all would like to see property increase in value, what does it really matter unless you're in the market purely to profit? Some people just want a decent house to make a home.

 

[noseall]

Bring it on I say. Youngsters need all the help they can get. Current house prices are utterly ridiculous.

 

[Vinty]

A house used to be a place to live in, nowadays it is an investment and some people expect instant equity as soon as they exchange contracts on a property ,if they don't get it they feel cheated.

 

[durhamplumber]

A house used to be a place to live in, nowadays it is an investment and some people expect instant equity as soon as they exchange contracts on a property ,if they don't get it they feel cheated.

So true

 

[ellal]

Bring it on I say. Youngsters need all the help they can get. Current house prices are utterly ridiculous.

Whilst a house price fall would be on the face of it welcome, if the adjustment was too severe it would tank an economy such as ours!
Too much of our borrowing is against one of the only 'assets' the UK has - it's housing stock.

Lower borrowing, spending falls. Spending falls, jobs are lost.
Napoleon was correct!

We are seeing evidence all around of a slowdown - sales fell at Primark ffs.
Add in the political turmoil, and the crash that would probably happen anyway could become a true depression!

 

[SirGalahad]

Bring it on I say. Youngsters need all the help they can get. Current house prices are utterly ridiculous.

The problem we have is that if there is a housing crash or correction the homes may become more affordable but then banks will cut back on loans if they fear the market will continue to drop. The knock on effect on the economy will likely slow down growth.

 

[ellal]

The problem we have is that if there is a housing crash or correction the homes may become more affordable but then banks will cut back on loans if they fear the market will continue to drop. The knock on effect on the economy will likely slow down growth.

In addition if prices fall, already unaffordable rents rise.

 

[noseall]

Guys, in the event of a no deal Brexit, the economy will nose dive irrespective of house prices.

 

[Ian H]

19% saw falls so 81% saw no movement or an increase?

 

[big-all]

19% saw falls so 81% saw no movement or an increase?

exactly
and over the 19% who saw movement what was the actual average percentage 0.1/1/10/20/30 who knows

ahh ok it say october 0.1% month on month that equates to about 1.2 % over a year

 

[ellal]

19% saw falls so 81% saw no movement or an increase?

It depends on...
a. the location, and
b. whether you can compare year on year against last quarter.

Interestingly as I said before, 'the crash that would probably happen anyway'...

This is again a problem of much of the 'developed' world...

An example

Link

 

[Notch7]

We are seeing evidence all around of a slowdown

True, ECB have ended QE so there is evidence of a slowdown in the Eurozone starting.

 

[^woody^]

The housing market has been over valued and over hyped for years.

So I can't see why a slowdown in something that should never have been so inflated in the first place is a concern.

 

[HawkEye244]

Even if 100% of housing stock dropped by 50% in value in 12 months it would still be unaffordable for most.

 

[^woody^]

Guys, in the event of a no deal Brexit, the economy will nose dive irrespective of house prices.

Yeah, just like the all the other countries in the world who are not in the EU.
Do you have any other market insights?