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Written by: Ruth Stevenson, Director/Solicitor at Ives & Co Solicitors
The housing market is no stranger to fluctuations, and recent trends have sent ripples through the real estate landscape. According to Zoopla, a prominent online property portal, there has been a noticeable drop in the demand for homes over the past two months. This decline, amounting to a substantial 18%, can be attributed to the surge in mortgage rates, which has left potential buyers reevaluating their options. Ives & Co, a leading solicitor in Nottingham, can assist you with residental conveyancing.
The impact of this dwindling demand is not confined solely to buyer behaviour; it has also cast a shadow over house price growth. Zoopla’s data reveals that, while average house prices registered a modest growth of 0.6% in the year leading up to June, the picture was strikingly different a year ago when prices were soaring at an impressive rate of 9.6%.
However, the prognosis for the housing market doesn’t stop there. Zoopla’s predictions for the future suggest that we might be in for more adjustments. They anticipate that average house prices could potentially decrease by 5% over the course of 2023. This projection underscores the ongoing dynamics at play in the property market.
These insights align with recent observations made by Rightmove, another influential property website. Rightmove reported that average asking prices experienced a decline for the second consecutive month in July. This shift comes on the heels of a noteworthy 1.8% surge in prices during May, which had propelled them to a record high.
What these developments collectively signify is that the housing market is in a state of flux, responding sensitively to external factors like mortgage rates. While this may present challenges for some, it also offers opportunities for those looking to make strategic moves in the property market.
The decision to dive on or wait on the sidelines is not a one-size-fits-all scenario. It’s a choice that hinges on your unique circumstances, necessitating a thorough evaluation of the pros and cons. If you find yourself in the enviable position of being confident in your ability to meet mortgage repayments, the prospect of buying a property right now may hold substantial appeal. This is especially true if your intention is to make this property your long-term home rather than a mere investment opportunity.
Whether now is the right time to buy will depend on your finances, mortgage affordability and long-term plans, but obtaining legal advice early can help you approach your purchase with greater clarity and confidence.
If you are purchasing or selling a property in England or Wales, please contact one of our offices, email quotes@ivesandco.com or call us to discuss how we can assist.
Our residential conveyancing team will be happy to discuss your transaction and guide you through the next steps.
