Nobody wants to be the last idiot who bought at the very top of the market
My colleague just bought her first home last Thursday. In London.
Supply is very low at the moment.
Hmm. We’ve just made an offer £25k below asking on a property and had it accepted. Market is definitely cooling down, that place was on there for 4 months and no sale.
Hoping that £25k below asking is more in line with actual value but who knows right now. Property market is ridiculous.
Rent still is rising.
Our house is sold stc (3 bed end of terrace). Can’t secure anywhere to move that meets our requirements (4 bed detached). When we do find something we like and can actually get a viewing, we are being outbid 20-40k above asking.
At this rate we will either pull out or our buyer will.
In our search, up to 20 miles radius, there are only 3-4 properties going on each week, and most are filling all booking slots within the first few hours.
How regional is this? Prices are still rising in Cornwall and property is still being sold STC in a matter of days.
Looking at the graph, there does seem to be a huge dip at this point every year. With how volatile the market is at this end of the graph, it doesn’t seem as out of the ordinary as it might at first. However, I could definitely see the cost of living having a huge effect in this.
[deleted]
I work for a mortgage broker, I’m honestly surprised, we are still stupidly busy.
Isn’t it just cause not that many are for sale at the moment with all the whorders holding onto their lettings so not many freeing up to sell?
No surprises here that there’s a massive spike when you aren’t taxed on buying a home.
Surely there’s not much activity because everyone bought during the stamp duty exemption
I find this stat quite surprising. Market is still damn hot hot
Stamp duty holiday brought forward a lot of sales hence inventory is light at the moment.
That doesn’t surprise me at all.
* Inflation is the highest since the 1980’s, which causes the cost of living crisis.
* People have less money to spend, and therefore become conservative with their spending.
* BoE increases its interest rates to control inflation, causing borrowing to become more expensive. Mortgage payments go up.
* High proportion of homeowners scramble to remortgage as they don’t want to be caught with an increasingly higher interest rate. This causes them to be fixed for 2-5 years.
* This results in fewer houses being bought or sold on the property market. People in chains find it difficult to buy and sell too.
* Average house values begin to dramatically cool off.
And for extra spice:
* People have higher repayments than the true value of their homes.
* Entering a bearish market.
* Significant layoffs as we enter into a deep recession.
* People without jobs, and a higher cost of living are now unable to pay their rent/mortgages.
* Defaults cause mortgage-backed securities to go to shit.
* Boom.
Wait till interest rates go up even further.
US markets about to crash big time (have already started a low burn crash). It’s time to buckle up.
Where did this info come from? Does not seem to reflect the problems people are having getting a property as they are selling so fast.
What’s the peak in 2016?
I thought they were saying there’s an increasing frenzy, so misinformation somewhere. But I don’t know!
People who bought before the 80’s/90’s crash went into negative equity, but if they kept the houses they eventually made it back.
I read somewhere that on a £300,000 mortgage at 1% – an interest rate rise of 2.5% will see payments increase by 40%
This line graph goes to immediately when the stamp duty break finished in 2021, which was a huge push to get transactions done before that incentive ended. It’s not giving any data to 2022 – it doesn’t show property sales are showing as of today.
Incredibly interesting graph, don’t think the transactions show the impact of the cost of living crisis yet though. Supply has been incredibly low for the past 6 months. Transactions = completions so wouldn’t be picking up any further cooling yet imo
They’re not introducing insurance for mortgages lol.
Shame all those oligarchs can’t buy housing off, denying hard working families a chance to get a home. Terrible shame… Still the callous property bubble explosion will help
That makes sense. 2022 is back to pre pandemic levels though.
The question remains: will there be a crash? Or will prices keep perpetually going up until nobody can afford a property.
The worry is… if there’s a crash, the cash-rich will just snap up more properties on the cheap.
We genuinely need government intervention, or a Corbyn-like figure to take power, abolish right to buy and build shitloads of social housing.
it’s a fucking bubble, of course fewer people are buying prices are way too high
There are a lot of Sold signs near me, I wonder how many buyers will pull out or try and renegotiate the price.
It’s almost as if there’s another crash being constructed by the top 2 percent
The latest point on the graph is March 2022 if I’m reading this correctly. The ‘floor’ date is Jan 2022.
Just for context in case anyone is reading this as live data
31 comments
Nobody wants to be the last idiot who bought at the very top of the market
My colleague just bought her first home last Thursday. In London.
Supply is very low at the moment.
Hmm. We’ve just made an offer £25k below asking on a property and had it accepted. Market is definitely cooling down, that place was on there for 4 months and no sale.
Hoping that £25k below asking is more in line with actual value but who knows right now. Property market is ridiculous.
Rent still is rising.
Our house is sold stc (3 bed end of terrace). Can’t secure anywhere to move that meets our requirements (4 bed detached). When we do find something we like and can actually get a viewing, we are being outbid 20-40k above asking.
At this rate we will either pull out or our buyer will.
In our search, up to 20 miles radius, there are only 3-4 properties going on each week, and most are filling all booking slots within the first few hours.
How regional is this? Prices are still rising in Cornwall and property is still being sold STC in a matter of days.
Looking at the graph, there does seem to be a huge dip at this point every year. With how volatile the market is at this end of the graph, it doesn’t seem as out of the ordinary as it might at first. However, I could definitely see the cost of living having a huge effect in this.
[deleted]
I work for a mortgage broker, I’m honestly surprised, we are still stupidly busy.
Isn’t it just cause not that many are for sale at the moment with all the whorders holding onto their lettings so not many freeing up to sell?
No surprises here that there’s a massive spike when you aren’t taxed on buying a home.
Surely there’s not much activity because everyone bought during the stamp duty exemption
I find this stat quite surprising. Market is still damn hot hot
Stamp duty holiday brought forward a lot of sales hence inventory is light at the moment.
That doesn’t surprise me at all.
* Inflation is the highest since the 1980’s, which causes the cost of living crisis.
* People have less money to spend, and therefore become conservative with their spending.
* BoE increases its interest rates to control inflation, causing borrowing to become more expensive. Mortgage payments go up.
* High proportion of homeowners scramble to remortgage as they don’t want to be caught with an increasingly higher interest rate. This causes them to be fixed for 2-5 years.
* This results in fewer houses being bought or sold on the property market. People in chains find it difficult to buy and sell too.
* Average house values begin to dramatically cool off.
And for extra spice:
* People have higher repayments than the true value of their homes.
* Entering a bearish market.
* Significant layoffs as we enter into a deep recession.
* People without jobs, and a higher cost of living are now unable to pay their rent/mortgages.
* Defaults cause mortgage-backed securities to go to shit.
* Boom.
Wait till interest rates go up even further.
US markets about to crash big time (have already started a low burn crash). It’s time to buckle up.
Where did this info come from? Does not seem to reflect the problems people are having getting a property as they are selling so fast.
What’s the peak in 2016?
I thought they were saying there’s an increasing frenzy, so misinformation somewhere. But I don’t know!
People who bought before the 80’s/90’s crash went into negative equity, but if they kept the houses they eventually made it back.
I read somewhere that on a £300,000 mortgage at 1% – an interest rate rise of 2.5% will see payments increase by 40%
This line graph goes to immediately when the stamp duty break finished in 2021, which was a huge push to get transactions done before that incentive ended. It’s not giving any data to 2022 – it doesn’t show property sales are showing as of today.
Incredibly interesting graph, don’t think the transactions show the impact of the cost of living crisis yet though. Supply has been incredibly low for the past 6 months. Transactions = completions so wouldn’t be picking up any further cooling yet imo
They’re not introducing insurance for mortgages lol.
Shame all those oligarchs can’t buy housing off, denying hard working families a chance to get a home. Terrible shame… Still the callous property bubble explosion will help
That makes sense. 2022 is back to pre pandemic levels though.
The question remains: will there be a crash? Or will prices keep perpetually going up until nobody can afford a property.
The worry is… if there’s a crash, the cash-rich will just snap up more properties on the cheap.
We genuinely need government intervention, or a Corbyn-like figure to take power, abolish right to buy and build shitloads of social housing.
it’s a fucking bubble, of course fewer people are buying prices are way too high
There are a lot of Sold signs near me, I wonder how many buyers will pull out or try and renegotiate the price.
It’s almost as if there’s another crash being constructed by the top 2 percent
The latest point on the graph is March 2022 if I’m reading this correctly. The ‘floor’ date is Jan 2022.
Just for context in case anyone is reading this as live data