As we move into the last few weeks of summer, we hope that September will bring more activity to the market. August has been one of the quietest for a number of years with many people concentrating on holidays rather than houses. Traditionally when the schools return after the break, people fall back into the routine of life and normality resumes.
This summer the housing market has been hindered by the dramatic interest rate rises over the past 20 months. Although we all expected interest rates to rise, most of us have been caught out by the severity and pace of the rises. Now the cost of borrowing is now more expensive, the cost of property has reduced. This is enabling buyers to pick up better deals than a year or two ago when the prices were artificially high.
According to a Halifax report, the typical cost of a home in the UK is now 6.7 times average annual earnings of a full time worker, whereas a year ago it was 7.3 times annual earnings.
The reduction in property values is being seen as an opportunity to move to a new home with plenty of choice available. Within a three-mile radius of the local towns of Wellingborough, Irthlingborough and Rushden there are approximately 1,000 properties currently for sale.
The general feeling is that interest rates will reduce within the next year or so, so buying now may not be a bad time to acquire the right house for the right price. However, buyers do need to be cautious as there are still many properties being marketed at 2021 prices, these today will be overpriced. A shrewd buyer will research comparable properties that have actually been sold (not for sale) in recent months to ensure a property is priced correctly according to the current climate.
We look forward to September optimistic for more activity and a stabilisation of interest rates when the Bank of England meet next on the 21st.