With the news full of the markets sudden plummets, the housing markets seem to be taking the same route. Half way into 2018 the world watched the markets make a drastic turn, and things began to drop. The pattern that were seeing here is that every approximately 8-10 years the markets need a correction, and as we know, a correction happens with an extreme collapse in the market.
Despite everything that is happening at the moment with Brexit, causing an economic crisis in Britain at the moment, we’re also witnessing the housing market take quite a hit and adding stress to the economies already rough situation. The housing market has been in quite some chaos over the past couple years, but things are only expected to get worse as prices are expected to drop even lower. Experts are predicting prices in certain areas around the UK to drop as low as £70,000.
It seems like we’re looking at a tough road ahead for both buyers and sellers. Although despite the drop, there’s more inventory on the housing market, however estate agents are claiming that houses are staying up for much longer than usual, with the assumption that the pressure in price and rise of mortgage rates by half a percent is most likely the cause.
Back in early 2005, America’s housing market can be seen to be on a consistent uprise, bringing the markets into a huge bubble that peaked in 2006. Inevitably, everything came crashing down by the end of the year, which became one of the important causes of the 2007-2009 recession in the US leaving homeowners, businessmen, banks,
The housing market is not the only market to see such drops, rather it seems that diversified investors are becoming quite familiar with this plummet in the markets, as we take a look at the stocks showing us similar movements, and watching the markets drop since October 2018. Experts are claiming that the housing market has not seen such high volatility since the 1930’s, with housing delinquencies plummeting, but housing income – skyrocketing. Another interesting movement we’re witnessing is the housing interest rates bizarre progression. In the summer of 2018 the rates few through the roof, but the second the markets began to show suffering, it dropped three quarters of a percent, causing housing prices to plummet at a huge 10%.
The UK seems to be taking a stronger hit on the housing market considering the uncertainty that floats around the Brexit situation, with housebuilding declines starting in London and the Midlands.
But as we draw close to the 28th of March and wait for May to return from Brussels with hopefully better news than the last time, we hope to see the markets find stability in their prices and settle down as the economy rises and business gets back on its feet.