In June 2021, 81,338 mortgages were granted, up 21% over the 2014 to 2019 June average. Even though property prices have reached all-time highs, mortgage payments have not. Because mortgage rates are near an all-time low, affordability has stayed consistent over time. Due to low mortgage rates and the increasing availability of high LTV mortgage options, first-time buyer financing is up 25% year over year (Zoopla).
The number of homes available for first-time buyers has remained stable, with average asking prices in this market increasing just 3.4 per cent year-on-year, as many purchasers want larger residences and more room (Rightmove).
Is now the right time to buy a home?
Over the last year, the housing market has exploded. Working from home has opened people’s eyes to living in locations with more natural amenities on their doorstep. People have realised that a lengthier drive is manageable if we travel into the office three days a week. But how much longer can the bubble last? While there is much debate about how long this current boom will endure, here is our advice to deciding if you should jump in now or wait.
Don’t panic buy a home
Do you already have a residence? Because property prices are relative, this is a more straightforward question to answer if you are already on the property ladder. What I would advise is to avoid the circumstance where you have sold yet feel compelled to acquire somewhere you don’t like. Whether you wait or purchase now, the market will soften or fall back at some time. If you’re in it for the long haul, the market won’t matter, so you can afford to take your time and make good decisions.
Take advantage of the strong market
Do you have to relocate? A booming market allows you to make rapid choosing rather than waiting months for a sale if you need extra room and know where you want to reside. And you’ll have to act quickly since there are others nearby who either have the money or are eager to get started. You don’t want to get caught up in a bidding battle if that’s the case.
Buyers who are making their first purchase
Are you a first-time homebuyer? Because the market is still developing, now is a perfect moment to invest. Many analysts believe that the market will not crash, but it may slow down slightly now that the stamp duty vacation is being phased away. A significant event must occur for a collapse to occur. That scenario has already happened in central London, with a scarcity of foreign buyers and investors. The remainder of the market is dealing with an increase in interest rates. And, while inflation appears to be a concern, the market is likely to remain on its current path unless and until interest rates increase considerably beyond that rate.
If you are thinking of moving house and aren’t sure where to start looking for accommodation, give our team at Qube Residential a shout for any queries.
Sources: Dataloft and the Bank of England