Hi Everyone! I just wanted to give you an honest and insightful update on the UK housing market from my eyes. As you may already know, the Bank of England recently raised interest rates in June 2023 annoyingly.
In this blog, I will discuss the impact of this decision and provide some predictions on the number of properties listed during the upcoming summer and autumn seasons.
- Market Adjustments: The interest rate increase is likely to have a noticeable impact on the UK property market (more so than ever). Higher borrowing costs mean increased mortgage rates, which can reduce affordability for some buyers. Consequently, we may witness a slight slowdown in property transactions as buyers re-evaluate their financial situations and adjust their budgets accordingly. Luckily Mansfield is in a protective bubble as property prices are lower than in many areas!
- Summer Property Market Prediction: The summer season typically experiences increased activity in the property market as families look to move during school holidays. However, following the interest rate hike, I anticipate a moderate decrease in the number of sales compared to previous years (the Covid era). Some potential sellers might delay listing their properties or decide to stay put until market conditions stabilize.
- Autumn Property Market Prediction: As we move into the autumn season, we expect the property market to regain some momentum. Sellers who postponed listing their properties during the summer might decide to go to market.
- Buyer Opportunities and Negotiations: Buyers may find more negotiating power in this changing market landscape. With a potentially lower demand for properties due to increased mortgage rates, some sellers might be willing to negotiate on prices or list at a more attractive price.
- Importance of Professional Advice: Given the evolving market conditions, seeking professional advice becomes crucial. Marketing for a higher price and expecting a sale will be a major NO NO.
The property market is influenced by various factors, including economic conditions and government policies, which can impact these predictions.
I hope they do not decide to increase further for us all.
Wishing you all the best, your favourite little Mansfield Estate Agent,