If you’ve been looking to sell your property or move into a new home over the last year or so, you will have noticed how high house prices have become. Due to these prices, people with houses to their name already are more than happy to sell, often seeking lower-cost properties to make the most of the market.
However, if you’re looking to move to somewhere larger or even get your foot on the property, the price hikes certainly pose a problem. Not everyone wants to or can viably wait for the market to potentially settle down in the future. So, if you’re a would-be buyer, what does the present state of play mean?
First-time buyers struggle while existing homeowners double-up
With such an emphasis on getting your foot on the property ladder, the state of the housing market over the last year almost seems cruel. Due to rising house prices, there are even more houses for sale, with statistics for the first two weeks of September showing a 14 percent listing increase in the month prior. On the flip side, house prices are at an all-time high, with average house prices hitting over £338,000.
Unfortunately, if you’re looking to buy your first home, market predictions don’t foresee these massive prices going down any time soon. As buyer demand is exceptionally high, property prices will remain high. The market isn’t here for new buyers as it stands: it’s being fueled by those who already have a property. This is particularly the case for people buying a second home.
With so many properties being listed and homes surging in value, if you’re already a homeowner, suddenly, you’re spoiled for choice and have more value to hand to go on and upgrade. Significantly, house prices aren’t going up at the same rate around the country. While the average price has gone up by as much as 15.4 percent (Wales), London has greatly lagged, seeing an annual growth of around 2.8 percent, presenting opportunities.
The need to play the market well to benefit
As noted above, to make the most of the market as a buyer, you’d need to look to areas where house price increases aren’t as high as in your area, potentially allowing you to find a better property for less. Even then, it’s essential to get the best rates from a comparison mortgage broker like Trussle in the UK. The upfront price is one thing, but paying the lowest rate overtime is where a buyer in this market will really benefit.
Something else to look out for that may influence the market and possibly see a downturn is the interest rate. All but coinciding with the rise in house prices, the Bank of England has kept interest rates at record lows, but some lenders see this changing soon. Rates are expected to go up, which would likely have the knock-on effect of the housing market cool. In turn, this has made a bit of a rush in the short term.
The housing market remains red hot if you have a property already, but if you’re trying to get onto the ladder, it’s not a great environment to be in right now.