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DOOM: House prices

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    DOOM: House prices

    "UK house prices fall for first time in 15 months after Liz Truss mini-budget

    Average price of a property drops to £268,282 in October as interest rate rises hit affordability

    UK house prices fell for the first time in more than a year in October, as the Liz Truss government’s mini-budget wreaked havoc on the housing market, pushing mortgage rates sharply higher.

    The average price of a property was down by 0.9% compared with September, to £268,282, according to Nationwide building society’s latest monthly report, the first snapshot of a tumultuous period. This was the first fall since July 2021 and the largest since June 2020. The annual growth rate slowed sharply from 9.5% to 7.2%.

    Robert Gardner, the Nationwide chief economist, said: “The market has undoubtedly been impacted by the turmoil after the mini-budget, which led to a sharp rise in market interest rates. Higher borrowing costs have added to stretched housing affordability at a time when household finances are already under pressure from high inflation.”"

    https://www.theguardian.com/money/20...budget-october

    Looks like I've called peak of the housing market

    #2
    So the rate at which the price of unaffordable housing increases has slowed down? Hardly DOOM-worthy.

    Comment


      #3
      Originally posted by ladymuck View Post
      So the rate at which the price of unaffordable housing increases has slowed down? Hardly DOOM-worthy.
      +1
      It's great news ... until the government devises yet another intervention to (try to) maintain nominal house price inflation.

      Comment


        #4
        House price growth of 1-2% per year, on average, over the long term would 'feel' right. Brown trashing pensions, and people dumping cash into the BTL market has certainly fueled growth this past few decades.

        I am what I drink, and I'm a bitter man

        Comment


          #5
          Full Nationwide Building Society report here:

          https://www.nationwidehousepriceinde...jm-6bcts-ookd9

          Comment


            #6
            House price inflation good, everything else inflation bad.
            Make Mercia Great Again!

            Comment


              #7
              House prices are only relevant if you are:
              1. Wanting to buy in the near future
              2. Wanting to sell in the near future
              3. Wanting to borrow in the near future
              4. One of those freaks who obsesses over irrelevant changes that don't affect anyone who isn't in the three groups listed above
              …Maybe we ain’t that young anymore

              Comment


                #8
                great news for me as I want to buy a bigger house next year.

                Comment


                  #9
                  Originally posted by WTFH View Post
                  House prices are only relevant if you are:
                  1. Wanting to buy in the near future
                  2. Wanting to sell in the near future
                  3. Wanting to borrow in the near future
                  Given that a significant proportion of home-owners find themselves in case 3 every couple of years or so, it is quite relevant. If prices fall then you may not be able to get a new mortgage at the same LTV (or even to the same level) if the lender wishes to value your property.
                  How often do people move on average, I wonder?
                  Originally posted by MaryPoppins
                  I'd still not breastfeed a nazi
                  Originally posted by vetran
                  Urine is quite nourishing

                  Comment


                    #10
                    Originally posted by d000hg View Post
                    Given that a significant proportion of home-owners find themselves in case 3 every couple of years or so, it is quite relevant. If prices fall then you may not be able to get a new mortgage at the same LTV (or even to the same level) if the lender wishes to value your property.
                    How often do people move on average, I wonder?
                    So, the ones who switch mortgages every couple of years will have to stick with where they are, or hope that they have paid some of it off.
                    …Maybe we ain’t that young anymore

                    Comment

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