FALLING House Prices - How Far Will They DECLINE?

I dont believe it will

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Home prices will continue to fall well beyond a decade. Too many people locked in record low rates, for RECORD HIGH COSTS. Prices only need to decline about -10% for catastrophic results. Risky HELOCS, Airbnb busts, and decade long value declines, combined with commercial real estate in the red, across the board. This bottom won't show until the mid 2030's at the earliest. -40% when the dust settles. God bless, America.

I wouldn't be so worried about first-time buyers, as they simply won't be able to get into debt at the moment. They'll have to cut their cloth accordingly and buy something cheaper in order to be able to afford the repayments. The real problem is with the people who took on more and more leverage as rates fell, and instead of paying down their loans when they were ahead, took on more and more debt on variable rates (or 'fixed' rates as they are weirdly known in the UK).

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

Don’t worry too much folks. We are a small island and our population is growing there will be a shortage of housing for a long time, especially when you have a badly run as we do and have done for years, blue, red or yellow 🤷‍♀️

Houses most crash people cannot afford to pay rental fees we work for only paying rent why are we working for it's better not to work because we don't have enough money for rest of our life it's crazy high all ready houses went far far what we think it's crazy

In Western Australia we see the asking price then after a few months we can see the sold price.
It gives a really good idea which way things are going. We can also see an estimate of properties not on the market. They show a low medium and high price and indication of how likely will sell.

Thank you for your insight

This illustrates why it was such a bad idea to give control of interest rates to the Bank of England. Of course the big beneficiaries of high interest rates are the banks (bankers looking after their own). Poor people are becoming poorer, their money siphoned off by the greedy bankers. And as credit becomes more expensive, this will in itself feed into prices, further stoking inflation.

Hope so

That is the main problem, it is only worth what someone is willing to pay not what an estate agent tells you it is worth.
The housing market is just one massive scam.

until they go down to £35 when our parents brought their homes it's never happening anyway

Im always bemused when people talk about the value of their house, unless you bought 2 or want to move to somewhere not as nice who cares? Its like saying your arms are worth a million pounds each, how do you plan to cash in?

In the long run we would all be better off if house prices dropped by 70% more inline with Europe and peoples wages.

There will never be a housing market crash ,people have to much money houses are selling at a rapid rate ,Cars also selling at a rapid rate so much money available, if the interest rate went to 15% then you will have a housing market crash .

House prices have kept increasing ridiculously at out of hand high rates that they were always going to eventually slow down and then fall at some point.

If you're looking for your home to sell based on house prices rising permanently at ridiculous out hand high rates you are setting youraelf up for big fall.

Don't buy a house, buy a plot of land and build something nice, modern, energy efficient and inexpensive and never build a house with tiny little bricks that someone has to spend days and days of skilled work gluing them all together with cement!!

Rightmove asking prices 😂 Almost as big a joke as zooplas predicted prices based only on geographic averages. Both make their money on a lively housing market so of course no hidden agenda 😂😂😂

The British public need to accept their role in all of this. They over paid and fuelled the bubble and now expect to be bailed out of their financial mistakes.
Basically, there is no personal accountability for crappy financial decisions and they need to learn a lesson not to over pay in the future.
Property speculation does no social good whatsoever - makes British workers too expensive, social division etc .....
Any idiot paying more than 4.5x earnings for a property deserves all they get.

Time for that correction and more realistic housing prices!

High rates, if we ever get them, are always good for the economy, just means different, better, solvent people, have a return of savings and they can spend into the economy. Rather than the in debt and living it up of debt sorts. Rates are still very low. Favouring the few, not the many. Rates need to double at least yet. This is a good thing for the many. Solvent people feeling safe to spend is better than those using debts to do so.

I keep seeing "House prices dropping" but when I look it's still the same old shitty terraced houses with no gardens for just shy of £200k. When will they actually drop for the first-time buyer...

IF high rates worked then the 500% increase from 1/2% to 5% would have done SOMETHING ????


Yet we still have inflation ...

Clearly Rates have little effect on inflation

think about it 12 years of near zero % rates and no inflation ...


The Bank of England is clueless !!!!!!

Depends of the area .. rough council estates are on a decline yet upperclass and Muslim ghetto's are on the rise

Definitely need to the interest rates to 6 percent

Home supply will never rise to equal demand so average prices can't fall in the long term. Fluctuations and local effects don't mean very much.

People are paying for their decision to rent from the bank,

Majority of the view is to have the Median price levels nothing but ideal thing gets dictated by economic conditions of the Region. London is no Frankfurt and Neither of it's One.

Mor mortgage went up by £600, which was really scary. I can afford it, but it's put a huge squeeze on my finances, especially with energy, fuel, and food price rises. I'd estimate I'm 800-900 poorer each month that I was only a year ago.

We bought our flat 538k, the asking price was 650k, the after 6 months they reduced it to 585k...

Obviously we didn't want to pay more 🧐

It'll be more like the crash of the early 70s which ended up more of a blip and forgotten due to high inflation and rising wages.

The global economy lecture and studies now need forgetting all about it because a new strange economy is talking over ... prices of everything will keep going up including the property market...They WEF want us all to suffer and own nothing and be happy... So don't expect party time any time soon.

I am not sure did you mention somewhere about it but it's very important UK government decision :
The personal allowance is increased to £12,570 for 2021/22 – an inflationary increase of £70 over the 2020/21 level of £12,500. However, the allowance will remain at this level for 2022/23, 2023/24, 2024/25 and 2025/26. As incomes rise with inflation, people who currently do not pay tax may start to pay tax once their income rises above £12,570..

It's mean in line with other factors, mainly soaring living cost, inflation, stagnation of income over a couple of years people will have more problems to save money, problems with meeting lenders criteria, less of saving, more spend for living and taxes. Houses price MUST fall. The question is, what will be further after 2026.😮

One of my friends put an offer on a 2-bedroom ready to move in flat with two bathrooms (including master ensuite) in a central city location and after much bargaining, it was finally agreed at £150,000. The bank has now come back and said they can't offer the mortgage because they think the flat is over valued!

House prices need to drop by Al least 50% - the average house price should never be more than 3 times average earnings - period - every Federal, State & local Gov’ts. need to employ all mechanisms available to them to ensure this occurs - domestic housing needs to be looked at as a right for all citizens & not an investment vehicle - if investors want to invest in property as an investment vehicle, no prob’s, they can invest in commercial property - until such time this is instituted into a country’s political policy for domestic housing sector, we’ll continue to have the boom bust cycle for ever & a day, particularly while Gov’ts continue to keep the money printing machines operating - the same can be said for the Stock Market re an overpriced sector.

Err what about net migration? The last two years the population grew by 600,000 last year and 500,000 the year before, its been getting higher and higher for the last two decades. Building has fallen well short for many years. The supply and demand imbalance is at unprecedented levels. As soon as interest rates stabilise prices will boom.

One nuclear incident anywhere in Europe and it’s all game over 👍

You took out a higher interest loan as an incentive to pay your loan off faster? Oi! your'e a thick bastard.

To the UK youngesters.
My opinion as a non-UK citizen, living in Europe, EU citizen. (This part is a disclaimer) +(We still wish best for you UK despite bad blood from UK politicians).
Living with your parents (as 20 or 30’s year old) is not a bad thing, it is a safe way and place for you to start building financial “ground”, a stash for plan your life as is goes.
Even if you marry, living together with your parents (either groom side, or bride side), allows you to build your financial strength, for the couple to chart the living in all conditions after having bought their house.

30% min but over the next 2 or 3 years definitely. Good stuff to for the younger generation. Don't buy now would be my advise , give it another 2 or 3 years 😊

So four of the five effects you mentioned can be easily addressed by the trend we see for households to combine (by taking roommates or children moving back in with their parents) to save money either for living expenses or to buy a house so it seems to me the pressure you describe aren't really likely to have their full effect because people will intuitively move to reduce their costs and thus the demand for individual homes can be reduced

The house market WILL NOT CRASH

These problems will not be resolved for a long time. Nobody even tries to fix anything.

Sadly, the most sensible thing for high-skilled high-earning professionals is leaving the UK.

How interest rate is going to have effect on Inflation when it is happening due to Ukraine war and Brexit.

Due to shortage of houses it is less likely housing market will crash

No there is shortage of rentals in

From the fastest growing economy in the EU prior to 2016, to the economic basket case the UK has become. Thank you Brexiteers for destroying my beautiful country.

Interest rates for mortgages are just profiteering and proves competition is not working, my first mortgage in 2020 when base rate was 6% was 3.95% - why are we only seeing rates above base rate now?

Great. House prices should never have been a commodity in the first place. Housing is a human right, not an investment vehicle.