England's housing market is showing signs of recession. More people are trying to sell their homes in the face of high mortgage costs, high inflation and apparent economic decline. This will soon be the case across Europe as demografics are getting worse.
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Prices shouldnt keep rising though.
Am I wrong to think this is not bad?
Keeping housing prices affordable is important for any society.
yes you are right for socio-economic reasons. but the whole fiat banking is based on inflationary prices. a collapse of the real estate market or the bond market would be a disaster for the banks and therefore also for all other taxpayers who will then foot the bill.
They just have to get it under control.
Bank of England will have an easier time than the USA to do that.
Famous last words.
well, we will have to wait and see.
Its possible.
I certainly hope so.
Why is it that second home owners expect the government to support their 'investments' by continuing with special discounted capital gains? Everyone else has had capital gains their threshold slashed in half for a few years consecutively.
https://www.telegraph.co.uk/money/property/second-homes/owning-second-home-no-longer-worth-it/
Genuine question.
Maybe: nothing propels the credit mechanism as the mortgage market
True. Interesting etymology:
mortgage
late Middle English: from Old French, literally ‘dead pledge’, from mort (from Latin mortuus ‘dead’) + gage ‘pledge’.
Etymology is always treacherous
I think I'd like that engraved on my tombstone when I go.
In the UK, one’s home is a key hedge against inflation and a key driver for the ‘wealth effect’. So, falling house prices would be a significant economic and political problem.
But flipped on it's head, the UK encouraged people to lever up on unaffordable borrowing for second homes, buy to let holiday homes. Almost as if people were tricked into taking on more debt. This has caused the systemic problems, exasperated by dumb immigration policy, which forces tax payers to foot the bill for it.
Falling house prices would solve so many problems in so many places in the world.
I wouldn’t say encouraged. I would say duped by artificially low interest rates to buy a ‘fail-safe’ property.
I do agree that homes shouldn’t be so expensive but it’s to be expected when money doesn’t hold its value.
That's something I keep coming to terms with in my mind and took a long time to sink in. It's not that home prices are increasing, just that cash money's value is constantly decreasing.
“ Although all political parties express concern about high housing costs, they are wary of a price drop that would significantly dent the wealth of owner-occupiers, who are still a majority in most parts of the UK. The scale of private investment in housing means that a sustained price fall would do wider damage to the economy, through its effect on consumer confidence and household balance sheets.
The prospect of ongoing price falls and more expensive loans is likely to make households more cautious on spending, even if they avoid negative equity (where the house price sinks below the outstanding mortgage). The corresponding shrinkage of bank and building society assets would constrain their new lending, further dampening investment and consumer demand.”
https://apple.news/ABwlK12rqRD6eKtrn6Tn_Hg
Finally homes will become for affordable
Housing market is market. No property is yours! This is a bad idea to invest in housing these days, globally..