National News Housing crash coming

[Peterdev]

Looks like worrying times ahead with lenders refusing to provide funds to new buyers unless they have 25% deposit up front.
Several buyers and sellers left in limbo and unpredictable times ahead.
There’s also going to be half built homes unsold.
I just hope we are not on the brink of a 1920s slump.
All the signs are there. Government borrowing through the roof and looking to be generations later to be paid.
What awful times we live in

 

[RyanioBirdio]

There was going to be a housing crash this year regardless, and indeed a wider global economic crash like in 2008. It has been talked about on this very forum over the last 12 months or so. It’s just that now it’s going to be covered up by this virus shutting down most of the planet, but unfortunately it has created further and much larger problems, so while a few people won’t have to take any personal responsibility the overall damage will be much worse. Before the virus began to spread the banks had already burned down the kitchen in the form of more reckless lending, which had in turn caused significant smoke damage in the living room. Now something else has caused the entire house to go up in flames, which means that although they’ll get away with what they’d been trying to cover up, the outcome is significantly worse. But at least nobody will have to shoulder the blame. If nothing else this virus has provided more or less everybody with a shovel to bury any and all bodies they’d been hiding.

TL;DR - yes you’re right and it’s going to be a hell of a lot worse still once people step outside and see the true extent of the damage.

 

[Basham Wonderland]

The golden years are long gone now. We are witnessing the end of Western capitalist civilization.

At least we get to be in the Chinese history books (hopefully).

 

[Northstandboy]

What happens to anyone who was in the process of applying for a mortgage? Mortgage in principle accepted but the main application is now delayed/possibly being cancelled due to Covid-19. Will they possibly not be able to get a mortgage of they have under 25%?

 

[horseman]

hand over 25% and risk having it repoed in a year or so

 

[Village-Yellow]

Whether it is 5, 10 or even 15 years, it will all be blot on the landscape, a pin prick in time.

 

[werthersoriginal]

There wasn’t a housing crash in 2008, in fact that’s when prices got ridiculous in the south. When interest rates are rock bottom property can be an appealing investment. But I wouldn’t want to make any predictions in this unprecedented situation

 

[Peterdev]

It’s the unpredictability of it all.
Wealth is taking a hammering, and supermarkets I note are stopping any special offers.
Prices are rising too.
With less wages or nil in some circumstances these are difficult times.
Reading today Sweden is still not in lockdown

 

[Essexyellows]

There was going to be a housing crash this year regardless, and indeed a wider global economic crash like in 2008. It has been talked about on this very forum over the last 12 months or so. It’s just that now it’s going to be covered up by this virus shutting down most of the planet, but unfortunately it has created further and much larger problems, so while a few people won’t have to take any personal responsibility the overall damage will be much worse. Before the virus began to spread the banks had already burned down the kitchen in the form of more reckless lending, which had in turn caused significant smoke damage in the living room. Now something else has caused the entire house to go up in flames, which means that although they’ll get away with what they’d been trying to cover up, the outcome is significantly worse. But at least nobody will have to shoulder the blame. If nothing else this virus has provided more or less everybody with a shovel to bury any and all bodies they’d been hiding.

TL;DR - yes you’re right and it’s going to be a hell of a lot worse still once people step outside and see the true extent of the damage.

^^^^ this.

 

[oxford1985]

What happens to anyone who was in the process of applying for a mortgage? Mortgage in principle accepted but the main application is now delayed/possibly being cancelled due to Covid-19. Will they possibly not be able to get a mortgage of they have under 25%?

Mortgage in principles are being extended for further 6 months

 

[Foley]

It’s the unpredictability of it all.
Wealth is taking a hammering, and supermarkets I note are stopping any special offers.
Prices are rising too.
With less wages or nil in some circumstances these are difficult times.
Reading today Sweden is still not in lockdown

Sweden are taking a very different approach. They are letting people do things 'sensibly' and not restricting much through government order.
I wonder if this will change?

 

[Foley]

The golden years are long gone now. We are witnessing the end of Western capitalist civilization.

Not too much of a huge statement!
As you have seen this happening , out of interest what is coming along next?
A Putin style government? China? N Korea?

 

[LowerSouth]

^^^^ this.

Once Brexit was “done” on 31st Jan , the property market immediately switched back to full speed ahead, with sales being very strong.
Once Corona struck many viewings were cancelled and the market evaporated.
Suspect the market will be frozen during Corona and for a period afterwards-probably the rest of this year.
Thereafter will depend on how the economy recovers and more importantly people’s confidence.
We have been reading for years of an impending implosion of the housing market.
There has been no sign of this in Oxfordshire.

 

[LowerSouth]

There was going to be a housing crash this year regardless, and indeed a wider global economic crash like in 2008. It has been talked about on this very forum over the last 12 months or so. It’s just that now it’s going to be covered up by this virus shutting down most of the planet, but unfortunately it has created further and much larger problems, so while a few people won’t have to take any personal responsibility the overall damage will be much worse. Before the virus began to spread the banks had already burned down the kitchen in the form of more reckless lending, which had in turn caused significant smoke damage in the living room. Now something else has caused the entire house to go up in flames, which means that although they’ll get away with what they’d been trying to cover up, the outcome is significantly worse. But at least nobody will have to shoulder the blame. If nothing else this virus has provided more or less everybody with a shovel to bury any and all bodies they’d been hiding.

TL;DR - yes you’re right and it’s going to be a hell of a lot worse still once people step outside and see the true extent of the damage.

I should have quoted this !

 

[chuckbert]

The golden years are long gone now. We are witnessing the end of Western capitalist civilization.

This reminds me of the quote I saw: "If capitalism is so ideal, why does socialism have to come and bail it out every 10 years?"

 

[Essexyellows]

Maybe we have reached "Peak Capitalism" and the globe needed to reset the spreadsheet to zero?

Lets be honest nothing is "worth" anymore than numbers in an account.

I think the economic impact and change in peoples mind sets will stick with us for decades. The "Post Covid Generation".

 

[Peterdev]

This might be similar to post Second World War scenario when the government had to pour money into building projects etc
Question is whether the government has bottomless pockets.
I think there will be less focus on people with selfish ideas and more on helping people

 

[Malc]

This might be similar to post Second World War scenario when the government had to pour money into building projects etc
Question is whether the government has bottomless pockets.
I think there will be less focus on people with selfish ideas and more on helping people

I really hope so.