Sell now before house prices crash - warns leading Liverpool estate agent Adam Sutton
House prices may have jumped to a record high this summer after the biggest monthly rise in 16 years according to research released by Nationwide, but a leading Liverpool estate agent is warning that the property boom will soon come to an end and house prices will crash when the coronavirus recession kicks in.
Adam Sutton, founder of Adam Sutton Estates, spent years working in the real estate sector in London’s Canary Wharf before setting up his own property selling business in Liverpool. The property expert says the boom won’t continue and is urging people to sell their properties now before property values collapse.
Adam Sutton said:
“Houses prices plummeted by an average of 15% during the 2008 recession. The economic turmoil we saw then is similar to the financial disruption we are witnessing right now so it is inevitable that house prices are going to crash. We’ve seen a sales mini-boom this summer but it is unlikely to last. Property prices are soaring now but a crash is inevitable when the full effects of the recession kick in.
It isn’t scare mongering. We’ve seen property prices fall in the aftermath of every major recession and all the indications are that the economic climate is going to get even worse in the months ahead with the furlough scheme coming to an end, mortgage holidays ending, businesses closing and the consequential rise in unemployment. Some people will struggle to keep a roof over their heads.
I don’t want to be the bearer of bad news but my advice to anyone thinking of selling is to do it now, or face having thousands of pounds slashed from their property values. Time is also running out for buyers to take advantage of the government’s stamp duty cut.
The consensus across the property sector is that house prices will fall. It could be far worse than property professionals are saying so I think it is right that I speak out and inform people. It is a gloomy outlook but current valuations are not sustainable amidst a global pandemic and what could be the worst recession in history.“
Britain’s largest property website, Rightmove, says that August was the housing markets busiest month for a decade but Lloyds Banking Group, Knight Frank and Santander have all warned that plummeting house prices are expected. Lloyds say that the worst case scenario was 20 per cent over three years, Knight Frank is predicting a slump of 7 per cent this year and Santander predicts a six per cent drop. Brexit negations could lead to “further uncertainty and dampening growth”, the bank warned.
“My message to everyone is to sell now. Of course, some people are worried about letting people into their homes with Covid-19 rates rising again and that’s why we are investing a lot in selling homes online with virtual tours and extensive video footage of the properties we sell. There are ways to sell without opening your front door.”
This was posted in Bdaily's Members' News section by Helen Thorpe .