Just when we thought it might be getting worse, the property market has bounced back, well at least it seems that way for now.
With most mortgage lenders recently commenting on how poor the property market was becoming with a severe lack of spending and selling, it is a surprise that we are now seeing a turnaround financially.
In the last month, we have seen an unexpected amount of growth in the housing market as well as the employment sector. Although the prices have picked up, there is still a shortage of properties available on the market which is leading the demand to increase also.
“Affordability is an issue as household incomes are being squeezed, with inflation outstripping wage growth, but this has been countered by low unemployment, low mortgage rates and a shortage of properties for sale”, The Guardian.
Although the rise is only minor, it leads the way for a brighter future for the property market. With a slight rise of 1.1% in August, mortgage lenders are suggesting that there will be a further rise to come.
Halifax, owned by Lloyds Banking Group, has said that prices were 2.6% higher than the previous year in 2016 in comparison to the previous 2.1%. With these figures surprising a lot of mortgage lenders and us chartered surveyors too, we can only hope that this is going to stay steady for months to come.
Halifax’s managing director, Russell Galley, recently said that the rising recent figures can be down to a number of elements including “recent employment growth” and “unemployment rate falling to a 42 year low”.
With the rising figures being a good sign, it does pay to look out for other contradictions like the figures from Nationwide. As Britain’s biggest building society, their figures are not only trustworthy but also highly accurate.
Nationwide reported that house prices had actually dipped between July and August at a rate of 0.1%, meaning the annual growth rate is actually 2.1%. So although we are seeing a rise in employment and a demand for property, the figures aren’t always in correspondence with that as we need to take into account the shortage of supply, low mortgage rates and fewer transactions taking place.
So what does this mean for the future? No one can really tell anymore! All anyone can do is sit back, watch and wait to see when the best time to sell, buy or enter the property market really is because, with the changing climate we have now, nothing is set in stone.
Get in Touch
If you are concerned about selling your property or looking for property surveys to make a smooth purchase, then give me a call on 01983 731 198. With the ability to support you through both sale and purchase, Chris Ledger can be the chartered surveyor you can trust while active on the property market.