Is now a good time
Is now a good time to buy a property in North Wales?
As house prices continue to rise, many people we speak to in Denbighshire and Conwy are asking us if now is a good time to buy or whether they should sit tight and hope that house prices drop.
Despite the Bank of England warning back in May 2020 that house prices would potentially fall by 16% because of the pandemic house prices show no signs of falling. In fact, the biggest monthly rise in house prices in 20 years occurred last month according to the latest Rightmove property index. This means that prices are now 9.4% higher than they were this time last year and 2.3% higher than they were in January.
The increase in house prices is due to several factors. There is pent-up demand, due to people holding off selling their homes due to the uncertainty caused by the pandemic. Mortgage rates have remained low and despite the end of the stamp duty holiday in October 2021 people are still keen to move, fuelled by the desire created during lockdowns to seek a home with more space.
Sarah Coles, a personal finance analyst says, “There are no signs of imminent house price deflation because the race for space and the welcome return of first-time buyers are continuing to breathe life into the market. We still haven’t finished the process of reassessing how and where we want to live in a post-pandemic world.”
There are signs though that the market is starting to even out again. For the past 12 months, it has very much been a sellers' market with multiple offers for every property. Buyer demand still outstrips the supply of available homes but there is an indication that this is slowly being corrected. The number of sellers has increased by 11% compared to this time last year and the number of potential buyers has increased by 16%.
Interest rates increased from 0.25% to 0.5% in February and it is possible that rates could continue to rise. This will make it more expensive to borrow money and reduce the number of cheap mortgage deals. Therefore if you are considering buying now would be an opportune time. Speak to the team at LL Financial Solutions on 01745 591811 for help with this.
Russell Galley who is Managing Director at Halifax believes house prices will “maintain their current strong levels…[but growth will be] broadly flat during 2022 - perhaps somewhere in the range of 0% to 2%”
As house prices have generally risen faster than salaries, there is no current indication of house prices falling anytime soon, and the fact that it is still currently possible to find a cheap mortgage deal, it seems like now is a very good time to buy a property.
If you are looking for your perfect property in North Wales, please ensure that you give us a call on 01745 591811. We will then be able to let you know as soon as a property that we think is perfect for you comes on the market, long before it reaches places like Rightmove.