UK House Prices Finally Start Falling: What Next?
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- เผยแพร่เมื่อ 19 ก.ย. 2023
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UK house prices defied rate hikes but are now falling rapidly, raising concerns. This video delves into the reasons and future prospects.
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1. www.economicshelp.org/blog/55...
2. www.schroders.com/en-gb/uk/in...
3. www.nber.org/papers/w21154
4. www.bbc.co.uk/news/explainers...
5. www.ft.com/content/2f290c38-c...
6. www.bloomberg.com/news/newsle...
7. www.bankofengland.co.uk/boeap...
8. www.bloomberg.com/news/newsle...
9. www.bloomberg.com/news/articl...
10. www.bloomberg.com/news/newsle...
11. www.ft.com/content/4ca0eac8-8...
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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.
Our society has become obsessed with everything increasing in value as opposed to staying stable... and in the last 60 years we've seen how our economic system is crumbling and needs to be propped up artificially
Oh no, an estimated 10% drop in prices after a 207% increase in the last 20 years. These poor poor home owners!
You know it's bad when under 35's are hoping for a housing crash so they can finally get on the ladder themselves
My parents paid £65,000 for a 3 bed semi detached, that same house is now worth £250,000. There is absolutely zero chance of me ever owning property.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
It will be interesting to find out how the fall is spread between the different types of housing, like say entry level homes vs semi-detached
wait so, prices are falling but interest rates are rising, meaning loans are less affordable for lower income people?
I don't live in the UK but I face a similar problem in Malta. Me and my brother will face a big challenge in finding a house or even a home. Prices for a house average at about 450k. One may opt to rent an appartment but thats not cheap either. My father tells me just 20 years ago, houses were 200k cheaper than they are today and about 10-12 years before that, houses costed about the same as a car.
The housing bubble has to burst simply because those sitting on properties at the moment planning to use the capital raised from the sales to pay for their old age care bills will not be able to sell these properties to the younger generation because the vast bulk of the younger generation through reasons of rent and rent hikes and wage stagnation cannot afford to save for a deposit. Therefore a lot of these houses being sat on by boomers will either not raise the hoped for sum or will prove unsaleable
If the 30% crash mostly comes off the most expensive housing, that's not good enough. We need 200k houses to go down to 160, to give back the missing bottom rungs of the ladder. To destroy the captive rental market and force it to be competetive, instead of extortive.
I'm beginning to think treating housing as a commodity was a mistake
Sooooo, its not the good type of house prices going down where people who used to not be able to afford a house can now, but the bad version of house prices going down where only those who are rich/can buy in cash can now afford to hoard more houses... Yay
For the future of next generation... it has to burst!
The decline in house prices isn't because of more affordable housing coming to the market. It's because of the high interest rates forcing owners to sell because they can't afford the mortgage anymore. Landlords are also selling because rent is too high for people to pay and the cost is too high for landlords to just sit on an empty property. I tell you, good news will only come when more affordable housing is put on the market. That is the only time when prices will actually fall. As long as the Conservative is in government then there will never be any good news.
house prices may fall but the fundmental problem will remain: too many people, not enough houses.
If people are downsizing homes they're not increasing the overall supply of housing; they're shifting the supply to bigger expensive homes which new homeowners can't afford anyway.
Home owners
You didn’t mention the fact that banks don’t want to lend money for mortgages to first time buyers because they see them as too big of a risk
House prices might drop back to 2018 levels before continuing up again.