Whether you’ve been thinking about buying or selling for a while, or just started contemplating making the move, there is always one question everyone asks: when is a good time to buy or sell?
Essentially, the best time to buy or sell will fluctuate depending on the condition of the market and economy.
When looking at housing prices, these are determined by a few factors:
Supply & demand: House prices can fluctuate depending on how desirable a location is, and how many properties are currently available on the market there. If you are looking at an area where no developments happen, any properties there will command a premium as the housing stock is limited.
On the other side, if you are looking at a location that continues to grow with new housing developments, the value of current properties available nearby will diminish, as there is greater competition for buyers.
Economy health: Consumer confidence plays a part in changing housing prices - if there are negative changes in unemployment rates and wage growth, it will impact how confident people are to take a leap, and how much they are looking to pay for a property.
Interest rates: If the base interest rate level set by the Bank of England is relatively low, the cost of borrowing is lower so people can spend more on a property – this pushes house prices up.
Equally, if rates are on the rise, mortgages are more expensive, causing fewer people to choose to move – house prices tend to fall when this happens.
There has been a lot of speculation about housing prices recently, and how they might be affected by the cost-of-living crisis and rising rates. In October, Rightmove reported the average asking price had increased again, hitting a record of £371.158.
Is Now a Good Time?
With recent new government regulation announcements, increased market turbulence along with household bill increases, there are a number of factors to consider when taking the leap in this current period:
House prices are currently at elevated levels, and many, including first-time buyers, are hoping asking prices will start to fall, but there is no guarantee this will happen.
First-time buyers are having to pause in their efforts to find a home with rising costs and struggles to obtain a mortgage with a higher interest.
With so many variables to consider, it is important that you weigh up your financial capabilities alongside what is happening in the market. Historically, buying opportunities pick up during Autumn, before dropping off at the end of the year due to homeowners staying put for Christmas.
If you are thinking of buying or selling now, contact the Jones Robinson team in your desired area to discuss your options and gain our ‘on the ground’ perspective of the local market. We are here to help!
*Disclaimer: Current data and the economic situation is correct at time of blog creation*