As we hit the mid-point in the year it is fair to say the housing market has experienced significant change in the past six months. The number of sales agreed has declined which has resulted in buyers having more choice of properties to buy than in recent years. Currently between the towns of Wellingborough, Irthlingborough and Rushden there are over 700 properties available to buyers.
Thirteen months of consecutive interest rate rises by the Bank of England is now taking its toll. The first few interest rate rises were almost accepted as rates were at an all time low but the last three or four rises have now taken rates to their highest for fifteen years and are now making an impact. The mortgage market has been particularly turbulent in recent weeks with lenders withdrawing a number of fixed rate deals in anticipation of the Bank of England rate rises, this has disturbed the market further limiting choice of mortgage options.
There are a large percentage of homeowners who are still fixed into the considerably lower mortgage rates, potentially up to 2026 who are unaffected by the rate rises but many people looking to move home or buy for the first time are having to adjust to far higher repayments which is making affordability harder and borrowing levels lower.
The market has become competitive amongst sellers with many trying to make their price more attractive to buyers, this has resulted in sellers who are unprepared to adjust their price experiencing few or no viewings and then eventually withdrawing the property from the market.
The market of the last two years with lower interest rates and higher house prices is now a thing of the past. We are all now adjusting to higher interest rates and lower house prices. It is now vitality important to correctly understand the market conditions and what influences a sale. Accurate guidance and advice will help both buyers and sellers alike.
As we look forward to the next quarter, we hope for a period of stability which will enable confidence to grow and for home movers to digest the interest rates and more competitive property prices.