Economists overseas predict 10-20% House Price Falls – Reality or fiction?

October 3, 2018

My morning browse through videos on Youtube, that is what appears on my timeline that they assume I’ll be interested in viewing, brought up not only negative news in my world of football (Manchester United vs Jose Mourinho), but also a line of negative news in the world of property. One such video from ABC News (Australia) title ‘The Big Chill‘ drew me to view it as it was focused on real estate and house prices predicted to fall between 10-20%.

I haven’t for a while looked at property outside of Europe to note what is happening elsewhere in the world, though it would appear from watching the above video that Australia in many regions are bracing themselves for a fall in real estate value – A disaster for many investors and a big lifeline to genuine house buyers. It would appear that the effect is being seen at the top of the market mostly and that some areas are seeing falls, others a slight rise and many are just remaining flat.

Without question, globally and certainly in the UK, property prices are out of reach for many people searching for a home to live in over a property to make money from, many predict a slow down and decline of property prices in the UK following Brexit – national press remain split on this subject with many publications often expressing stories both for and against price falls. It happened in countries such as Spain and Ireland not so long ago so it is not a fictional story that property markets can crash, though Australia’s property market knife edge situation is said to be due to that fact that many hold interest only mortgages (sure it is still the casein the UK too) and that these loans will start to push out to principal plus interest options thus increasing for many monthly payments.

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

The five MOST searched mortgage questions answered by a property expert

With terms including the word ‘mortgages’ generating over half-a-million Google searches a month (595k) in the UK alone, it’s clear that many prospective homeowners are still confused about how mortgages work, what they’re eligible for, and how to navigate a challenging market. To help provide clarity, Luke Williams, Specialist Property Advisor, at Pure Property Finance,…
Read More →
Breaking News

53% of Tenants likely to challenge rent increases, but fair landlords have little to fear, says LRG report

More than half of tenants say they are likely to challenge rent increases under the incoming Renters’ Rights Bill (RRB), according to new research by LRG (Leaders Romans Group). However, the figures also show that nearly half of the tenants surveyed would not look to challenge a rent increase, a reflection, LRG says, of the…
Read More →
Breaking News

Nationwide report Rural rules the roost

Rural rules the roost as countryside homes plough ahead of urban properties for house price growth House prices in predominantly rural areas have risen by 23% over the last five years, compared to 18% in predominantly urban areas Rural terraced properties have seen the strongest rate of price growth, urban flats the weakest Commenting on…
Read More →
what is happening to house prices
Letting Agent Talk

Smart Upgrades: Boosting Rental Property Value Without Breaking the Bank

Most landlords don’t have a vault of gold stashed away for renovations. If you do, good for you (and maybe hide it better?). But for the rest of us, improving a rental property usually means walking a tightrope between cost and ROI. So what can you actually do that won’t drain your savings, and still…
Read More →
Home and Living

Creating the Perfect Rental: Balancing Aesthetics, Functionality, and ROI

Let’s get this out of the way: “perfect” is doing a lot of heavy lifting in that title. Because, really, no rental is perfect. Not for everyone. Not forever. But if you’re aiming to create a rental that looks good, works well, and pays you back in more than just stress headaches? You’re in the…
Read More →
Letting Agent Talk

The Landlord’s Guide to Hassle-Free Maintenance and Long-Term Tenant Satisfaction

Do you own rental property? If yes, you already know that you are being put on a test: keeping things running smoothly while somehow managing not to lose your mind (or your best tenants). Maintenance. It’s not fun. But neglect it, and your rental becomes a revolving door of disappointed tenants and mounting repair bills.…
Read More →