Hold tight, we might level out soon!

This is a quite tricky time in the housing market, with prices continuing to rise and houses selling as soon as they go on the market.
I am often asked what people should do at the moment and I think my answer is: ‘hold tight’ because things might be about to change.
The end of furlough and the end of the Stamp Duty holiday for higher value homes will have an impact on the market and should slow things down a little.
A levelling off would be no bad thing.
At the moment prices are soaring and there is a real danger that some properties are being over-valued, which will mean that people could be paying more than a property is actually worth.
That’s all very well, but it becomes a danger if property values fall dramatically and suddenly, as it would leave people in negative equity – paying a mortgage for a property worth less than they have borrowed.
But as I say, some levelling off of prices would be welcome.
Income increases have not kept pace with the increase in house prices so that is bound to make house-buying less and less affordable, particularly for people trying to buy their first home.
These first-time buyers are the lifeblood of the housing market, but if they get priced out of the market, it will start to stagnate.
I think the most important thing to do at the moment, if you are thinking of a house move is to get the best advice you can.
Speak to a broker who will be able to advise you on your budget and help you to understand what you can afford and what you should do in the current climate. It is particularly important that you don’t over-stretch your budget at the moment, because things can change so quickly.
For a free, no-obligation discussion on any mortgage or insurance-related issue, please give me a call on 01723 384558 or 07767 692 653 or email me at mgrayshan@googlemail.com

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