| Comment | Persimmon build 14,500 homes per year, albeit not all in Glasgow. Not sure what we can make of a sample of 119. Moreso, presumably they didn't cancel the homes, they just pulled out of the sale. Whether they can find new buyers is likely the more important thing.
A 20% drop would be huge. Prices only dropped 16% in 2008, right? And that was a crisis with hooks driven right into the property market. The COVID crisis, while exceedingly severe, will affect people very differently.
In terms of drivers, what would drive a fall in prices? Banks aren't running out of cash like they were in 2008 so will still lend. Interest rates are still virtually nothing. Unemployment will rise, but given the low interest rates, may just force people to remain in their homes rather than move. Add in to that, we still don't have enough new homes being built so supply is still very low. |
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