If you are considering the possibility of moving home, then please pay heed to the following – the timing for this is absolutely ripe, right now! There is an absolute balance of all the key factors that affect the property market and we haven’t seen such a positive window of opportunity for buyers and sellers alike for a long time. Consider these key points:
Confidence is at an all-time high.
This is arguably the most important ingredient in a positive property market. People feel more secure in their jobs and more optimistic about the future. There is a general feeling that, whilst the economy is not fully restored, it is certainly on the mend and provides a more stable platform for us all to base our forward plans upon. Confidence is critical for those committing to their largest financial purchase.
Money is incredibly cheap.
We may not see such low interest rates attached to mortgages again! Anyone who is considering borrowing now will benefit from astonishingly low rates attached to attractive fixed term deals. By the time the fixed term deal ends, we would hope that the property market is beginning to see signs of another lift, which in turn will provide an excellent market platform from which to broker a new deal with the banks. We also anticipate that by this time, we may start to see positive capital growth, providing further assurance to the banks in terms of what they are lending against.
Stamp Duty reforms enable significant savings.
These changes have certainly made it more affordable to purchase a property for the majority of buyers. It has also allowed the sellers who were ‘penned in’ against certain tax thresholds more freedom to gain ‘true’ market value for their prized asset. Whilst tax is an essential part of our economy, no one likes being charged unfairly, and these changes will have lessened that concern. For more information on the Stamp Duty changes, click here.
The media hype is more positive.
It seems we are enjoying a period free from doom and gloom! We are no longer being bombarded with scary stories about the fragility of our economic status and how treacherous a path we tread. Having endured a long recession and worked through some pretty challenging times, people have become more resilient. This new mood has enabled us all to look forward with optimism, rather than stagnate in fear of what may come.
We have more disposable income.
Earnings have overtaken inflation and people generally have more money in their pocket. Our core costs seem more reasonable (fuel, food, etc.) and allow us to spend on those additional non-essentials that not only make us feel better, but also broaden the circulation of money within our economy. If we feel we have more money, we feel better and spend more.
First time buyers are finally back in the market.
The Help to Buy scheme and newly launched Government backed ISA schemes are working. Having spent years unable to get onto the property ladder, first time buyers had disappeared, other than those kindly assisted by the ‘bank of mum and dad’. Forced to rent, and therefore strongly assisting the rental boom, this portion of the market has found it near impossible to save the 25% and 30% deposits once required by the banks. Now deposit expectations are more reasonable and because of these financial incentives, these crucial buyers have returned, which in turn has a knock on effect on all price levels within the ‘ladder’.
There is a 10% shortage of property for sale hitting the open market.
It is this that has provided the ‘balance’. It seems like a fair market for all right now, with neither seller nor buyer having the upper hand. With less available property for buyers, prices are holding firm and Red Hot Property is seeing more than half of its sales achieving full asking price or more. In fact, it is unusual to see a sale go for significantly less than the asking price. If your agent tries to tell you otherwise be wary.
So in summary, it is definitely a great time to buy and sell. If your personal circumstances permit, and you are ready to make a move, it really doesn’t get much better! Happy buying and selling!