October Market Update
In this market update we will cover:
1. Are we at rock bottom for mortgage interest rates?
2. Move before Xmas or wait until next year?
3. Economic outlook
Mortgage Interest Rates
If you have watched any of our Thursday night property chats at 6pm, you will have heard a theme when it comes to mortgage deals – they are cheap as chips at the moment!
But…
Have we seen them bottom out now? The truth is that we are not 100% sure, but we have a hunch that this could be the case. In the background mortgage lenders seem to be starting to raise a few mortgage rates while still offering reduced ‘hook rates’.
Inflation is pushing up; this was to be expected and is unlikely to impact the housing market boom at the moment. Reading the data, we expect inflation to up and around 4% by the turn of the year. With that in mind there is no reason why the banks won’t start to push up rates ever so slightly in coming months.
Keep on checking our social channels because we keep you in the loop with regular mortgage updates.
To move or not to move… (Before Christmas)
So what is the difference between selling your home and moving before Christmas vs in the New Year?
There are two big differences in our view:
One, there is less competition in November and December so the chances of getting better quality viewings is higher. In January there is a new batch of ‘carpet treading buyers’… We do our best to qualify buyers, but you will get a large volume people looking that will never actually buy a property in the New Year.
The downside about selling in December is that most solicitors tend to slow down for the year from about mid November. This does make getting any momentum in the legal part of a property sale a little tricky.
Our advice, if you are 100% committed to moving but are on the fence about when to move, then get in contact with us to discuss your plans. Even if you don’t put the property on the market, we can keep it in mind should a perfect buyer arise, plus we can keep an eye out your dream home too.
Two, New Year marketing is always a bit ‘cleaner’ without any Christmas decorations in the photos. There are also more properties coming to the market in the New Year, so you are more likely to find the perfect house for your next move. You will however have more competition in selling and finding; so expect a battle and a few potential disappointments.
Economic outlook – How will it impact your property?
Furlough has now come to an end in the UK and this along with other Government funding has resulted in over £900 billion being added to the UK economy. Effectively the amount of money in the country has increased by around 35% in 18 months… Hence the recent inflation figures going over 3%. Having spoken to people who review the economy professionally, they expect inflation to increase to around 4% by the turn of the year. They also said that the void in labour at the moment is as high as they have seen with over 1 million jobs needing to be filled. This In turn sees the cost wages climbing because of the demand from companies to fill the job roles.
How does this impact the value of your home?
- People have more money; so they are looking to spend more money.
- Inflation levels might force a Bank of England interest base rate increase next year and this might slightly decrease the buyer demand levels which are almost out of control.
- Working trends, ‘lockdown babies’ and the increase in the cost of property extensions will likely see more people planning to move home.
Below is the forecast we wrote from last month. We stand by that still and expect the property market to change slightly over the coming months.
Avocado Prediction Time!
There is a strong chance we are about to see a change in the market over the next 6 months… More listings, more transactions, slightly higher interest rates and slow rate of price climbing.
If you want to be part of our mission to change the property industry and you are thinking of moving, then we would love you to book your property valuation with us here.
www.avocadopropertyagents.co.uk
hello@avocadopropertyagents.co.uk
01344 249500