For those wanting to move to larger homes, the reduction in prices means that something which was once thought of as being unaffordable could now be within your reach. For those of us with a substantial deposit to put down, the next year or so could present opportunities to buy the home which we once thought of as being beyond our dreams.
So what are the experts suggesting will happen next? None of us has a crystal ball, but looking at the last house price drop, in the late 80s and early 90s, could offer a pointer as to what to expect this time.
In 1989, average house prices peaked in the third quarter of that year at £62, 782 and then fell back over the next four years to little over £50, 000, a drop of about 20%. However, this coincided with dire economic woes, including the pound’s ejection from the European Monetary Union’s “snake”, and interest rates rising in September that year to 15%. Inflation was running at high-levels so that the real effect of this price reduction was felt much more sharply. Prices hardly moved for the next four years before seeing an upward trend commencing in 1996.
So what lessons does this hold? The reduction in bank base rate should, with the government pressure we are now witnessing, lead to lower rates being offered by mortgage lenders. Bank’s reluctance to lend will be overcome and with it the numbers of properties coming onto the market and being sold will swell. Like any other decision, hindsight is a wonderful thing. Most of us will not realise that the most auspicious time, from a financial point of view to buy, has arrived until it has passed. However, since for many our housing is not only an investment but also a home, other factors will count, such as catering for the needs of a growing family.
When you do find the home of your choice, and whatever the state of the economy, speed is essential. Here at Fridaysmove we’re recommended by more than 150 different estate agency brands as being their conveyancer of choice. With over 50% of sales falling through currently, you may be surprised to learn that Fridaysmove equivalent rate is under half that. We simply work harder on your behalf to get a job done and you on your way. So when you decide to move, don’t chance to luck, but place your bet on Fridays.