Commentators are predicting a slowdown in the property market, which might not be such a bad thing.
The Halifax last week reported that mortgage activity was showing some signs of easing back and some estate agents are saying that rocketing house prices might be starting to slow.
I haven’t seen much evidence of that here in North Yorkshire yet but with everything going on in the economy it is inevitable.
The Bank of England has increased the base interest rate four times since December last year and another increase – taking it up by a quarter of a percentage point to 1.25% – is widely predicted for today. That interest rate increase would be to try to slow inflation, which is currently at an eye-watering 9%.
There are also other factors at work which will be slowing the housing market. We are going through a cost-of-living crisis, with petrol, gas and electricity prices rocketing and other prices shooting up too.
In such a time it is hardly surprising that people think twice about buying their first property or moving home.
And, as I say, a slight slowdown might not be bad news.
House sales at the moment are frenetic, with properties coming on the market and being snapped up in hours. And whilst once you might be in for a fair bidding experience to get the home of your dreams, now it is like the wild west with negotiations getting out of control. Asking price? What’s an asking price?
Rocketing house prices are good news for sellers but bad news for anyone looking to buy a home. People have inevitably been paying way over the odds for properties as demand far outstrips supply.
One commentator suggested that at any one time the average estate agent might have 20 properties on its books but 400 people on its waiting list. That’s a tough equation.
The worst-hit have been first-time buyers who have been finding it impossible to get that first foot onto the property ladder because prices are so high and getting higher.
Property is a great investment and even if prices slow, it will continue to be so. At the same time, people want to own a home of their own rather than pay rent.
First-time buyers are vital as if they are not able to buy at the lower end then the whole property market suffers. A slowdown in rising house prices will give them a fighting chance to buy.
Just at the moment, probably more than at any other time, it pays to get the right advice and do some preparation work to sort out your mortgage before you go house-hunting.
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