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What does the current economic situation mean for home buyers and sellers?

As a home seller, you’ve likely asked yourself what the current economic situation means for you. With the global pandemic and downturn of the housing market, it’s essential to understand what this means for you if you’re planning to sell – or if you’ve recently sold – your home. 

This blog post will provide an overview of what you should consider and how to make savvy decisions about buying and selling in today’s market. Keep reading to get essential insights and tips!

The Housing Market Crisis

In recent years, house prices have increased rapidly due to various factors, including inflation, Brexit, and the pandemic. This has made it extremely difficult for first-time buyers to enter the property market. A lack of affordable housing and rising costs can make it seem impossible for many aspiring homeowners. 

In the UK, the property market reached an all-time high in 2022. According to Rightmove, the average asking price for a home increased by 9.3% to £369,968 in July 2022.

Will house prices drop in 2023?

While it’s impossible to predict the future, the recent increases in the UK base interest rate have given some people cause for concern. Historically, when interest rates rise, it can lead to decreased consumer spending and slower economic growth. Following the Bank of England’s increase to 4%, these effects may become even more pronounced, with experts predicting this will result in a reduction in demand among prospective buyers and a decrease in house prices.

Ultimately, while we can’t predict the future with certainty, it’s important to remember that even in economic uncertainty, making sound investment decisions is possible.

Although the current situation can be daunting, there are still ways to make buying a home a reality. With careful planning and research, first-time buyers can find and secure the right property with the right support.

Is now a good time to buy a house, or is it better to wait?

Even though the housing market was resilient during the pandemic, there are signs that the housing market may be slowing down due to the rising cost of living. This is excellent news for first time buyers, who are looking to get onto the property ladder, as they may save money on the property price. However, with the rise of mortgage rates, this may cancel out any potential savings. 

As for sellers, with increased demand, your home’s value may have risen since you purchased it, meaning you have built up equity in your home. This equity can be cashed in by selling the home and taking advantage of the increased value. Selling a house in a seller’s market can be a great way to make some extra money, as you will likely receive more than what you originally paid for the property. Additionally, if you plan to move anyway, this can be an excellent opportunity to profit from your property and make a fresh start in a new home.

When deciding about buying or holding off, it’s essential to weigh up the pros and cons carefully. The answer will depend on your circumstances, and there’s no one-size-fits-all answer.

Buying and selling homes in Oadby & Wigston with Open House

At Open House Estate Agents understand that buying and selling a home can be a stressful process – even more so during challenging times. That’s why we are committed to ensuring your experience is smooth and hassle-free. Our team of experienced professionals is here to help you every step of the way. 

From the initial consultation to the final sale, we will offer you the expert advice and support you need. We also understand that these are uncertain times, so we are flexible and can work with you to find the best solution for your situation. 

We have a range of services to make buying and selling easier. We offer free online valuations, virtual viewings, and no-obligation consultations so you can accurately assess your property and determine your best options. 

Whether you are buying or selling a home in Oadby or Wigston, you can trust that At Open House Estate Agents, we’ll take care of all the details to ensure your process is simple and stress-free.

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