What’s happening on the frontline of the Housing Market right now?
The housing market has been in a spin of late. In an uncertain time it’s important to remember that national media masks and often exaggerates what’s happening locally. People will always need to buy and will always need to sell. This month, our Alison takes a view on the local market for buyers and sellers right now and why it’s still a good time to buy and sell homes.
The Mortgage rate increase and its impact on the market:
Mortgage interest rates have undoubtedly caused worry but historically rates are not high. We have enjoyed a low rate for a number of years. Many years ago I worked for a major high street bank and rates were typically around 13%. It’s important to remember that home ownership is still much more preferable to renting and overall much more affordable.
Buying a home is not a short-term thing and fixed by what’s happening now. It is a long term investment often paid over a 25-30 year period. The value of your home will ultimately increase over this period. Home ownership is therefore still a good long term investment for your money.
Advice for Sellers:
For sellers at this time it’s important to be realistic on price. We will always give honest advice, but in a time where demand has been short it’s been common practice for some agents to overprice stock in order to win business.
We would argue this is not the way to sell your home as it will end up sitting on the market and not get the interest or offers. The first six weeks are the most crucial for marketing your home so it’s important to get the price right.
This is especially true in a time when buyers will also be more concerned about affordability. Whilst we can always try higher prices, in a tough market it’s important to be realistic.
Advice for Homebuyers:
Demand is still outstripping supply. And so in a complicated and uncertain time homebuyers should be more open to what they are buying.
Consider things that could be more of an investment in the longer term. And most importantly try not to be influenced by outside views – parents, friends, grandparents will all have their view but you will be living in and eventually selling this home.