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Will Corona virus cause a house price crash?


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52 minutes ago, moonriver said:

Look at Foxton shares today (down 28%) and Purple Brick shares (down 28%), someone doesn't have much confidence in the housing market.

 

No wonder

  • Not many will want people around their home
  • if they did few would want to view
  • if they did they would need a job 
  • get a mortgage 
  • from a bank thats loosing money and needs a bailout.
  • Sell their home at a level that allows the current silly asking prices.

I cannot see any positives the only bright side for property speculators is if this goes on for 12 months and then rockets on cheap money into another property boom.

If you have to sell then its going to go for less.

Maybe I am not typical but I would have pulled the trigger at 450/475 to get it over with.

I am not now as I dont see this turning around for another 6 months at least... then the second wave with normal being a year or two down the line.

I have to take a chunk of deposit as additional security to keep my family and business going through the lean period.

I would be irresponsible to buy a property at this time so it would have to be be a lot cheaper to allow me to go for it and still keep money in the kitty.

I would also not expect to be able to sell my existing home.... which around here is the most important factor as I have yet to view a house where the vendor had job that would allow them to buy the house they are selling at Jan 2020 levels

I would think chains are now breaking as fast as holiday and hotel reservations who is going to complete with this over their heads?

 

Edited by Fromage Frais
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On 12/03/2020 at 12:44, Smiley George said:

If this doesn't cause a HPC, then you can pretty sure the chances of one ever happening are pretty slim.

If the financial crisis which is unraveling before our very eyes doesn't cause a correction in house prices, I'd be amazed.

I wouldn't be surprised if it doesn't cause a crash. I think we need 2 more years before a big crash. It takes time for strong beliefs to wane. 

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On 12/03/2020 at 08:44, Habeas Domus said:

Who would put their house on the market right now, "yeah lets invite in a bunch of strangers to wander around our house"

The market will die from lack of activity, but this will also prevent price discovery. By christmas time, Estate Agents will be desperate for a sale, any sale, at any price.

Not everyone has a choice - death, debt, divorce ... empty BTL property.

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i wonder if old folks wanting to downsize into small flats etc might stay put in big house until the 70+ quarantine phase is over?

I can see the market grinding to a halt. On the plus side, my landlord's main source of income is a restaurant .... ha ha ha. if he tries to sell up and evict us i will take him to court .... they'll probably be closed so it'll take him years

 

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Got this from an EA in my inbox yesterday as Boris was speaking...

My emphasis in bold

Good afternoon,

 

Like many businesses across the UK, we are closely monitoring the Coronavirus (COVID-19) outbreak and following the advice provided by UK health authorities.

 

All of our offices are open as normal and, if you have an appointment booked with us in the near future, we look forward to seeing you then.

 

Activity levels remain high and with the recent reduction in interest rates there is arguably no better time than now to be buying property.

 

In the meantime, we are encouraging all clients to check the latest Government advice.

 

If you have any of the symptoms of Coronavirus (COVID-19) or are otherwise unwell and can no longer attend your appointment, please call your branch soon as possible to let us know so that we can offer the appointment to someone else.

 

How can you help? 

 

Look after yourself and others by following this simple public health advice:

 

•            Wash your hands frequently with soap and water for 20 seconds each time

•            Use hand sanitiser if soap and water isn’t available

•            Avoid touching your face and eyes

•            And cover your mouth and nose when coughing or sneezing.

 

We are well-prepared for the situation and, with your help, we will be able to continue supporting our colleagues and clients and keep our branches open.

 

Kind regards...

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35 minutes ago, rantnrave said:

Got this from an EA in my inbox yesterday as Boris was speaking...

My emphasis in bold

Good afternoon,

 

Like many businesses across the UK, we are closely monitoring the Coronavirus (COVID-19) outbreak and following the advice provided by UK health authorities.

 

All of our offices are open as normal and, if you have an appointment booked with us in the near future, we look forward to seeing you then.

 

Activity levels remain high and with the recent reduction in interest rates there is arguably no better time than now to be buying property.

 

In the meantime, we are encouraging all clients to check the latest Government advice.

 

If you have any of the symptoms of Coronavirus (COVID-19) or are otherwise unwell and can no longer attend your appointment, please call your branch soon as possible to let us know so that we can offer the appointment to someone else.

 

How can you help? 

 

Look after yourself and others by following this simple public health advice:

 

•            Wash your hands frequently with soap and water for 20 seconds each time

•            Use hand sanitiser if soap and water isn’t available

•            Avoid touching your face and eyes

•            And cover your mouth and nose when coughing or sneezing.

 

We are well-prepared for the situation and, with your help, we will be able to continue supporting our colleagues and clients and keep our branches open.

 

Kind regards...

Reading between the lines, mildly, that's a 'we're still here, help!' message.

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From Sky news on twitter...

Quote

Sky News understands the Government is going to issue new guidance to the courts to prevent anyone being evicted due to the economic impact of Covid-19

I wonder what landlords will make of this?

Did they anticipate all businesses have a risk factor? Will they have made provison for those time hard times with no rent coming in?

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1 minute ago, moonriver said:

From Sky news on twitter...

Sky News understands the Government is going to issue new guidance to the courts to prevent anyone being evicted due to the economic impact of Covid-19

I wonder what landlords will make of this?

Did they anticipate all businesses have a risk factor? Will they have made provison for those time hard times with no rent coming in?

Levelling up people, levelling up.  Wow that's enormous.

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4 hours ago, Sausage said:

i wonder if old folks wanting to downsize into small flats etc might stay put in big house until the 70+ quarantine phase is over?

I can see the market grinding to a halt. On the plus side, my landlord's main source of income is a restaurant .... ha ha ha. if he tries to sell up and evict us i will take him to court .... they'll probably be closed so it'll take him years

 

See my post above, if that Sky news is correct, he won't even be able to try and evict you. 

 

 

 

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9 minutes ago, moonriver said:

From Sky news on twitter...

I wonder what landlords will make of this?

Did they anticipate all businesses have a risk factor? Will they have made provison for those time hard times with no rent coming in?

Nurse!

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14 hours ago, bear.getting.old said:

I don't know.... it may happen faster than that. Remember during the 80s crash the media and VI's were reporting that all was well with housing and no crash could happen, for years before it did crash when all the signs were there...

This is horrendous xx% of the economy was destroyed in a sentence yesterday.

If you wanted to buy a 500,000 house yesterday you may had had a hotel owner, restauranteur, commercial builder, retail shop owner or holiday camp boss etc etc bid the price up.

Now you only have those uneffected and even the accountants, lawyers et al will have clients toasted  and thus lower earnings.

Add in that people are not going to risk leaving home or having people around..... the market is toast.

That means only exception or probate sell at any cost deals will be done in the main.

They are saying 100-250,000 dead mostly over 70 and those folks own most of the houses and or will be under quarantine for ages. 

I concur with others dead market for at least 9 months and then maybe funny money boom if no secondary waves.

 

 



 

Edited by Fromage Frais
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25 minutes ago, Fromage Frais said:

They are saying 100-250,000 dead mostly over 70 and those folks own most of the houses and or will be under quarantine for ages. 

 

Spot on. More family homes will be in market but not sure if they sell at lower prices.

Only the desperate ones will sell for much lesser prices.

Otherwise people will sit tight on them for 6-12 months until market has another bounce.

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2 hours ago, stop_the_craziness said:

"offer the appointment to someone else"  Fabulous.  Still touting the FOMO vibe even when they are dressing it up as health advice.

They literally can't stop themselves, it's too deep in the DNA

That's absolutely disgusting, they need naming and shaming at the very least. 

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