It has been a while coming. We went through a minor blib in the property market ending Dec 2019, with a recovery coming January. Now it looks like we are moving into the recession that we have never had.
I think it is pretty obvious we are heading for another house price correction where house prices will again align better with our incomes. I had a long email chain discussion with a realestate agent saying he is still experiencing houses selling for the upper end of his target (24th March). I do understand the supply will dry up but so will the demand, so don't see the rationale for people paying over the odds.
Surely there is very little upside to housing and we are at end of cycle:
a) house prices are VERY much related to interest rates and interest rates can only go up (albeit probably not for a couple of years) and house prices will then go down,
b) there are real dangers of companies closing down permanently, people losing their jobs, bad debts and defaults increasing,
c) our large pool of imported labour and students will reduce (hard to justify extra expense of studying abroad or importing labour in a recession) which will impact rental demand, driving rents down,
d) rental relief will cost investors
What do other people think?