Housing Market Update for November 2023
Now, there is a lot of speculation about the current state of the housing market. There are talks of a similar situation in 2008, when the housing market crashed and left a lot of homeowners selling their properties for a lot less than they initially bought them for, as well as fears that mortgage rates are going to rise once again. But we’re here to assure you that all is not as bad it seems. Let us discuss these topics that will affect your property journey as the market stands currently.
Will there be a housing market crash soon?
In 2008, the housing market faced a colossal crash that was detrimental to a lot of property owners where it was estimated that properties faced a whopping 20% decrease in their value. Recovery was very slow as it took around 6 years to get property values back to pre-crisis condition.
However, this is not the case, nor is it estimated to be. Instead, the market is coming to a balance point which essentially means that property values are levelling out to what they were pre-covid. When we consider factors such as the cost-of-living crisis as well as wage increases.
As for right now, it is considered a safe time to sell or buy a property due to higher demand.
Will mortgage rates rise once again?
The short answer is it’s highly unlikely. Rather they will decrease or remain the same. For example, the Bank of England have recently announced that their fixed rate of 5.25% will remain as it is after 14 consecutive rises since December 2021.
The important thing is being pragmatic about the situation. Statistics are highlighting that in comparison to last year’s rates, they are not likely to rise any further but instead gradually decrease in time.
In summary, it is apparent a lot of big news publications are using headlines to shine the housing market in a negative light. Although upon research, the current state of the market highlights that this is not the case. Instead, it is considered a safe time to buy or sell your property.
We would, as always, remind you that we are an Estate Agent and don’t provide financial advice. However, we can certainly introduce you to our incredible network of brokers and IFAs who can and will guide you in your own personal circumstances. Using our years of real-world experience and knowledge, at 360 properties we aim to give you the best solution for your home.