Although for context, as of June this year
UK average house prices have increased by 24.2% (£55,880) since the start of the COVID-19 pandemic.
https://www.twindig.com/market-views/latest-average-uk-regional-house-prices
this post was submitted on 07 Sep 2023
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So they still haven’t fallen enough.
Another case of you’ll own nothing and be happy. Kids these days wanting to own a home and feel secure? Ungrateful spoiled brats.
You should keep in mind that decent homes are not in the market right now. What is being sold is mostly just dilapidated crap. This creates an illusion that housing prices are going down, but they're not. We will only be able to draw any conclusions once mortgage rates become more affordable. There's a huge possibility that if tomorrow rates will drop to 2021 levels then we will see that house prices went up and it will be a huge spike.
But that's nominal prices. Inflation has been severe since the COVID-19 pandemic started. Can't disregard that.
https://www.in2013dollars.com/uk/inflation/2020?amount=100
£100 in 2020 is equivalent in purchasing power to about £125.60 today, an increase of £25.60 over 3 years. The pound had an average inflation rate of 7.89% per year between 2020 and today, producing a cumulative price increase of 25.60%.
That makes the nominal increase a decrease in real terms.
Average wages haven't gone up by 25% since 2020, and I doubt people have been getting 25% returns on cash held over that period.
Housing affordability is lower than at any time pre-2020.
That may be true, but affordability is a different matter from whether house prices are rising.
This is the best summary I could come up with:
"The market will continue to rebalance until it finds an equilibrium where buyers are comfortable with mortgage costs in a higher range than seen over the previous 15 years."
Since December 2021, the Bank of England has lifted interest rates 14 times in row in a bid to clamp down on rising consumer prices in the UK.
However, the Bank's governor, Andrew Bailey, said on Wednesday that interest rates were now "much nearer" their peak than before, although financial markets still expect a further increase to 5.5% this month and another rise thereafter.
The average home now costs £279,560, according to the Halifax, which is part of Lloyds Banking Group, the UK's biggest mortgage lender.
Last week, rival lender the Nationwide said that house prices had fallen by 5.3% in the year to August, which it also described as the biggest annual decline since 2009.
Nicky Stevenson, managing director at estate agent group Fine & Country, said: "The number of properties available for sale remains constrained compared to 2019, which was a fairly typical year for the housing market.
The original article contains 513 words, the summary contains 179 words. Saved 65%. I'm a bot and I'm open source!