It turns out that home prices are unlikely to fall soon. In fact, the recession in July was a temporary break at the end of the stamp duty holiday. Somewhat surprisingly, demand continues to rise even as home prices rise. It is becoming clear that home prices are not the main reason for influencing whether buyers will purchase property. So what is affecting them? And what is the current home price forecast for October 2021?
Why is housing demand still rising in the UK?
The epidemic severely affected the housing market. As a result, the government had to come up with a number of schemes to help buyers. These schemes, along with re-evaluating their housing needs with buyers, new employment arrangements and lower mortgage rates continue to drive up housing demand.
Government schemes have introduced new opportunities for buyers. First-time buyers will now be able to buy a home comfortably, which has seen a huge crowd of buyers looking to take the first step up the property ladder.
Additionally, the Bank of England’s Monetary Policy Committee (MPC) voted unanimously to maintain the 0.1% rate. This is good news for buyers because the lower the mortgage rate, the higher the fuel demand.
Why are home prices rising in the UK?
The main reason for running through the roof of the house is the imbalance between supply and demand. The demand for housing is increasing and the number of new homes in the market is very low.
It is also becoming clear that stamp duty did not significantly affect home prices at the end of the holiday. Issues such as lower mortgage rates, government housing incentives, and buyers’ space needs continue to fuel demand, pushing up prices even further.
What is the current home price forecast?
Home Moving Service Provider Really Moving released home price forecast data that home prices will rise 1.7% in October.
Reallymoving has agreed to pay buyers the purchase price because they search for quotes conveyancing through its comparison site. Registration for these shipping quotes is usually completed three months prior to the date of the transaction. This makes it possible to predict home prices for realmoving.
In addition, since many customers may be skewed towards low-cost homes, realmoving is needed for errors. It does this by highlighting the average difference observed between its data and prices from the land registry in the previous quarter.
Traditionally, autumn and winter have been seen as a good time to buy a home. As a result, we can expect more buyers to enter the market, especially those who were hesitant during the first three quarters of the year. This will only increase the price of the house.
Let us also not forget that we are in the final stages of recovery from the epidemic, which means some return to normalcy. Really Moving has already seen a 14% increase in the number of sellers coming to market in September. This trend may continue into the winter.
Should I buy a house this winter?
The best time to buy a home is when it is suitable for your personal situation. Consider your financial situation first to make sure you can afford the home you want to buy.
That said, Q4 could be a good time to buy, especially if your money allows you to do it. On the one hand, mortgage rates are at an all-time low, there are plenty of government incentives and housing supplies are slowly increasing. On the other hand, the Bank of England may raise its base rate if inflation continues to rise. If this is the case, mortgage rates may rise, and mortgages will be more expensive if you delay your purchase.
Before you drown, it is always wise to do your best and talk to your financial advisor.
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