CONCERN among the public about a house market crash are the highest they’ve been in nearly 15 years, a leading property association has warned.
The National Association of Property Buyers says the number of people looking for advice on whether a crash is imminent have risen by 600% in the past month.
Searches around that term are now the highest they’ve been since 2008, according to the Google Analytics data obtained this week by the NAPB.
Real estate expert, Daniel Cabrera, from Sell My House Fast San Antonio says the interest rates are expected to rise in the next few years, which will make it more difficult for people to afford mortgages.
Other findings revealed searches for “will house prices go down” are at their highest since 2005. While searches around “signs that the UK is in recession” have seen a 20-fold increase in volume.
Scott Rubzin, founder of Tiffany Property Investments sees a huge raise in searching for the answers from his clients to whether housing prices will decrease. He says “It is certainly true that people are looking for answers more than ever when it comes to the future of the housing market. Prices have been volatile in recent years, and many people are wondering if they will continue to go up, or if they will start to come down. “
Jonathan Rolande, spokesman for the NAPB, said: “These figures underline just how much uncertainty and concern there is right now among the public with regards to house prices and the housing market in general.
“Record numbers are searching for advice in this area which illustrates how seriously many are taking the issue. We are also seeing more and more people looking for advice on plunging prices and whether we are in recession. This illustrates what a disastrous couple of weeks it has been for the Government.
But Mr Rolande said despite the wider economic turbulence caused by the Government’s recent mini-budget, homeowners would be wise to hold their nerve.
He added: “Even if we were to see house prices drop by 10 percent, which of course nobody wants to happen, then we’d only be back around where we were before the pandemic.
“What we might see in the months ahead is a fall which sees the market return to a more natural position and which may even help those looking to get on the ladder.
“Double digit rises which we saw quarter after quarter during the pandemic were never going to carry on and I suspect we are unlikely to see rises of that level again for quite some time.
“There is no evidence that the market is approaching a tipping point but it’s vital the Government continue to ensure the pound is stabilised and deliver policies which support the property market. The changes to stamp duty were a step in the right direction. But weren’t targeted at the right people meaning, so far, it’s not really had the cut through many had hoped it would.”
It is difficult to predict what will happen in the future, but most experts believe that prices will continue to rise in the short term. However, it is possible that they could start to come down in the long term if the economy weakens or interest rates rise, says George Beatty, real estate expert & Founder of Problem Property Pals.
