Is the global property price slump all down to Brexit?
Many would have thought that back in 2008 the average home value would have adjusted and for a short period of time it looked that way, though since what was only a minor dip it has been a ascent to the top of Mount Everest in property prices here at home.
Some prices have doubled and especially those properties that lend themselves well to investors / landlords such as the basic terraced 2 beds. Even if you were based out in my old home area of East London with the likes of solid working class areas such as Dagenham you now see 2/3 bed ex councils pushing past £300,000 without a glamorous wine bar in sight… But are we now starting to see these vulnerable stacked cards starting to be effected by a slight gust of wind?
Prices are falling in many areas and that is clearly evident by a basic check on the likes of Rightmove / Zoopla where many new listings are reductions. The mood within the headline writing camps of national newspapers is glum with headlines all negative in most areas.
With Brexit now less than 100 days away and still absolutely no clue to what the Prime Minister has in her plan, is it merely a knee jerk reaction by the property market to what maybe and if a soft Brexit happens will we simply get back to normal with increasing property values across the country?
Maybe the time has come that over valued property simply can not justify itself anymore? Regardless to there ever being a Brexit vote, would we still have come to this point that we are at now?
Globally there seems to be a downward trend in major property markets. Australia for some time has seen many areas with a sharp decline of property value and even Hong Kong, known to many as one of the most expensive and stable locations for property, is now seeing prices falls after a 15-year bull run.
Canada, Singapore, Beijing and even USA are having property market value slowdowns in recent months with fear from many that interest hikes are just around the corner. CNBC website headlines with ‘The slowdown in asking prices comes as sellers face a new reality of higher interest rates and affordability worries among potential buyers‘.