New Home Owners And Snagging Forum
Home Owners => House Prices and the housing market => Topic started by: New Home Expert on August 13, 2014, 01:27:15 pm
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House price set to crash as sellers outnumber buyers
Despite house prices soaring in the last twelve months, especially in London, experts are now saying what NHE warned of as far back as June on this very forum we have been warning of house prices set to crash and soon (http://www.brand-newhomes.co.uk/forum/smf/house-prices-and-the-housing-market/uk-house-prices-are-set-to-fall-soon/) and NHE predicted the Government created House Price Bubble "Perfect Storm" (http://www.new-home-blog.co.uk/government-initiated-house-price-bubble-perfect-storm/)as long ago as August 2013!
Industry experts are now warning of a "crash within months" after a "key survey" tomorrow by the RICS releasing figures for July, is expected to reveal there are now more sellers than buyers. With London house prices up a reported 26% on a year ago, it was only a matter of time before common sense returned tot he market.
Many sellers are now looking to cash in on the current high prices creating a glut of homes coming on to the market. At the same time, would-be buyers are starting to get the message that house prices do not just go up forever and are more wary of overpaying just before a new crash. Add in the fact that interest rates are not just likely to rise soon, but a rise is a near certainty within six months, will result in house price falls across the country. As soon as the cost of mortgages rise, house prices always come down.
With the new stricter rules (MMR) imposed by the Bank of England earlier this year, restricting the amount that banks could lend restricting the salary multiples that buyers could borrow, mortgages are likely to become harder to get, as well as more expensive.