NOVA NEWS EDITORIAL FEBRUARY 2023
NORMALITY RETURNS
NORMALITY RETURNS
As we find the evenings drawing out and hopefully the weather improving shortly with the sun on our backs our gardens will start to spring into an array of colours with the early bulbs coming through in our hitherto dreary borders.
Many of us will be hoping that the housing market bursts into life as well. Since the turmoil of the pre-Christmas interest rate rises the market became somewhat deflated but agents were still selling property at a steady rate. I prefer to consider that we are back to a more normal market, unlike what we have been experiencing over the past three years or so. It is easy to forget how the property market used to perform in pre-COVID days when there were maybe only one or two potential buyers viewing a particular house rather than having prospective purchasers queuing at the door.
First-time buyers and investment purchasers were less evident as initially prices rose and then interest rates. Now we have seen a small correction in the market with prices falling a little, whether or not this move is sustained remains to be seen, but if property does become more affordable then these buyers may start to take a more active role in the market.
Falling house prices are not always a bad thing for a buyer. If you are moving up market to a higher-priced home you will get a better deal. You will get more house for your money and the gap between your selling price and your buying price should reduce as a 10% fall in the price of a £500,000 house is much greater than that on a £250,000 property. This may persuade some buyers to take advantage of what may be seen as a good value for money buy. One thing for certain, there will always be property coming onto the market, it just may take a little longer to find the right one. Our expectations may have to change a little and possibly be content with a 7 out of 10 property rather than an 8 or 9. Whatever the choice, be sure that the property is right for you and that you are not buying just because there is little else to choose from.
Ultimately it may be best not to move or to rent somewhere in the interim and take your time to find the right home for your future.
Many of us will be hoping that the housing market bursts into life as well. Since the turmoil of the pre-Christmas interest rate rises the market became somewhat deflated but agents were still selling property at a steady rate. I prefer to consider that we are back to a more normal market, unlike what we have been experiencing over the past three years or so. It is easy to forget how the property market used to perform in pre-COVID days when there were maybe only one or two potential buyers viewing a particular house rather than having prospective purchasers queuing at the door.
First-time buyers and investment purchasers were less evident as initially prices rose and then interest rates. Now we have seen a small correction in the market with prices falling a little, whether or not this move is sustained remains to be seen, but if property does become more affordable then these buyers may start to take a more active role in the market.
Falling house prices are not always a bad thing for a buyer. If you are moving up market to a higher-priced home you will get a better deal. You will get more house for your money and the gap between your selling price and your buying price should reduce as a 10% fall in the price of a £500,000 house is much greater than that on a £250,000 property. This may persuade some buyers to take advantage of what may be seen as a good value for money buy. One thing for certain, there will always be property coming onto the market, it just may take a little longer to find the right one. Our expectations may have to change a little and possibly be content with a 7 out of 10 property rather than an 8 or 9. Whatever the choice, be sure that the property is right for you and that you are not buying just because there is little else to choose from.
Ultimately it may be best not to move or to rent somewhere in the interim and take your time to find the right home for your future.