2019 Half-Yearly Market Report. What are homeowners waiting for?
2019 continues to be an interesting year with many homeowners desperately trying to keep up with the numerous Brexit developments before a type of fatigue and veritable snow blindness set in!
Rates continue to impress, as does affordability, lender speed and repayment options. We have issued offers in as little as two working days and continue to find the high street lenders generous up to a £2m loan capacity. Only today a mainstream lender has relaxed criteria on part and part loans, continuing to illustrate how lenders do actually want to lend money. So whilst first-time buyers are busy, why aren’t more people choosing to move and capitalise on these funding opportunities? Well, it seems they are waiting for signs of the dreaded B word hitting house prices and delivering a divine message they should hold back! Understandably, post Brexit no one wants to be on the wrong side of the market and buy a home that may subsequently be viewed as overpriced.
We have no problem with this logic but the problem with rising/falling markets is only found in hindsight and particularly when prices start to rebound. With this mind, when people try and manipulate their move with such balletic precision, it presents a choreographic challenge! There are just too many variables. In the end, clients can be in danger of forgetting some of the core principles of residential home buying:
- If you are holding the property long enough, paying ‘full’ price for a house today, can seem of minor impact later in life.
- Surely the perfect physical house in a perfect location should be the goal opposed to acquiring a nice house perfectly priced!
- Interest rates are very low and any delay in buying may end costing clients far higher amounts that can also offset any house price saving.
People fundamentally want to move on with their lives and upsizing remains the most common reason to buy a new home. Homeowners who are waiting for more market information is perfectly logical. Not knowing the type of info you specifically want though surely isn’t logical at all!