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