Will housing prices continue to rise? If there is one thing that we are certain of at this time, it is that everyone is uncertain of what is around the corner. Everything is speculation and no one is truly prepared for what can come.
Look at the past two years as an example – nobody thought as soon as the clocks turned midnight on December 31st 2019 that our lives would see a global pandemic, a war, political upheaval, a recession and the changing of the monarchy in just two years among every other upheaval we have faced. No one could have predicted the dramatic ups and downs in the housing market either – and we continue to be uncertain about what is truly in store.
Jonathan Rolande, director of the National Association of Property Buyers, has however pointed to signs that many parts of the UK could still record increases up to 5% up through next year, despite concerns over the economic downturn and forecasts of 10% house price falls in 2023.
Rising interest rates, inflation, a cost of living crisis and drastic mortgage cuts may amount to the perfect storm which typically leads to a house price crash, but in the face of such factors prices are continuing to hold firm.
Areas in the north and regions of the Midlands are showing signs of prices still going up, with the ongoing lack of supply driving it, as well as the rental sector crisis. With people not able to afford rental contracts, many are continuing to save and put attention on buying, continuing to put sellers in a strong position.
Rolande estimates that rises of around 5% will be present over the next 6 months, although there are clear differences between this and the 1990s crash that left many with negative equity.
As of right now, there is still money to borrow whereas 2008 didn’t have any. Rates at 6% are more expensive yet nowhere near the 10% and more highs of the 1990s. Also of note is that commentators discussing slowdowns are not looking at the entire picture, where the past few years have seen double-digit rises every month in the market. This is not sustainable and destined to have ended at some point.
Smaller rises in property prices will help to boost chances for those wanting to get on the housing ladder, especially matched with government policy to support first-time buyers.
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Will housing prices continue to rise? No matter how things pan out in the next six months, estate agents Stockport still have their work cut out for them as much as those looking to buy property in Stockport. Contact the team at Joules Estate Agents today for all enquiries on how to sell a house and buying a property advice.