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Will property prices fall in the short term?

R

realdeals

Active Member
At the moment there is no sign of a significant reduction in property prices due in the main to relatively quiet markets as a consequence of the coronavirus. There is obviously a very close link between property prices and economic activity so at some point they will certainly be hit. However, it is unlikely that property prices will collapse so long as the coronavirus issue is addressed sooner, rather than later.
 
C

Cami

New Member
I was just thinking about this....I am currently thinking of getting a house but I am afraid that prices are gonna go down even up to 15-20%.
 
F

FWL

Member
While it would be naive in the extreme to suggest that property prices will not be impacted by the coronavirus, I don’t foresee a reduction of 15% to 20% in the short term. Yes, you may well be able to shave a few percentage points off current house prices but if the market bounces and you miss it, is it worth it?
 
J

Joshua Baines

New Member
Hi realdeals,
I personally think that in the short term, property prices will fall as people fall on hard times and look to go into renting, I also think that rental prices will boom due to a shortage of good rental properties.

I hope this helps,
 
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L

Longterminvestor

Administrator
Maybe we will see more sons and daughters moving back in with their parents in the short term - a boost in income for parents and cheaper accommodation for their children.
 
L

Longterminvestor

Administrator
There is a line of thought that sellers will, as they have done in the past, hold off selling their properties until markets recover. This could in theory speed up the recovery with limited housing stock available?
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
The unemployment will reduce the amount people can borrow for houses and it may cause forced selling. I think we will see price decreases in the near future.
 
P

PostBrexitInvestor

Member
The UK unemployment figures will depend heavily upon how long the UK government can continue to cover employee wages. We all know that tax rises are coming but in the short to medium term the government will need people in employment to keep the economy moving and increase tax income.
 
R

realdeals

Active Member
How long can the UK government leave it before increasing taxes to make up for the huge investment in the coronavirus pandemic? Surely they cant start targetting the UK property market again for taxes? They have bled the sector dry of late!
 
L

Longterminvestor

Administrator
There is talk that property prices in the UK could fall by up to 20% but I dont see that. Another report suggests a potential fall of just 3% if the lockdown ends soon - a little bullish for my liking. I think the fall will be under 10% so long as this doesnt go on for too long.
 
P

PostBrexitInvestor

Member
I also read that report which suggested that London would bounce back very quickly after this is all over - indeed there are figures showing that the luxury end of the real estate market is relatively stable. The UHNW and HNW individuals are insulated in many ways from this downturn - the majority will not be forced to sell even if things get much worse.
 
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