It’s been a hectic year in the property market with the lowest mortgage interest rates ever, resulting in numerous buyers chasing every property that came to the market. It was a difficult time with multiple offers, sealed bids, one eventual buyer and several disappointed purchasers.
How things changed during September, a new prime minister, a new cabinet and the crash of the pound all in a matter of weeks. So where are we today? Mortgage rates which had spiked at over 7% have now crept down and are about 5% or thereabouts. Monetary experts are suggesting that next year they might come down further at something around 4.5%. The heat has come out of the market and sellers who need to sell are sensibly lowering their expectations. Remember if you buy and sell in the same market, you should be able to balance your move by selling for less but also buying for less.
Nobody can predict how prices will adjust over the next 12 months. Historically people have tended to do better when taking the plunge and buying when many others are nervous, rather than waiting for the market to become more buoyant. The Bank of England has suggested that inflation will start to reduce towards the end of 2023 and the bank interest rate will reduce. Mortgage interest rates will follow suit.
If you need to up size, downsize or relocate in the short term there will be properties that are realistically priced to sell. It is likely that prices will bounce back in 2024. However, if you already have a good mortgage offer in place now is the time to take the plunge buying for the long-term will always pay dividends!
Peter Large
Director
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