What’s happening to House Prices?
In 2008/2009 house prices fell for 16 consecutive months and dropped by 18%. Analysts predict that this time prices will fall for at least until second quarter of 2024. But they only forecast a overall a 12% decrease in house prices from the high of 2021/22.
The reason for the prolonged crash is due to changes in the mortgage market. This means higher interest rates will not immediately impact mortgage rates, but will be filtered through slowly. But even fixed-rate deals won’t last forever. It is estimated that around 1.8 million mortgages will end in 2023. This means homeowners need to look at refinancing at much higher rates.
Commentators predict that interest rates will stabilise soon.. This means that the housing market will take some time to recover in terms of prices as well as activity. A crashing or weakening housing market is bad news for many, but it can also be an opportunity. Those who have the means will be able to bag themselves a bargain, as many have done after the financial crisis of 2008.
One thing sellers should keep in mind though is that even if house prices fall by 12%, they will still be higher than before the pandemic. This is because over the past two to three years house prices have risen on average in most places by over 20%.
The way to capitalize on that increase is to ask how to maintain or in some cases increase the value often without huge investment or indeed use Mau Investments to fund the work. And then assist you in marketing the property together with your Agent to ensure you get the price you deserve.
Mau Investments - Property Solutions made easy
dennis@mauinvestments.co.uk or Tel: 01 33298166
In 2008/2009 house prices fell for 16 consecutive months and dropped by 18%. Analysts predict that this time prices will fall for at least until second quarter of 2024. But they only forecast a overall a 12% decrease in house prices from the high of 2021/22.
The reason for the prolonged crash is due to changes in the mortgage market. This means higher interest rates will not immediately impact mortgage rates, but will be filtered through slowly. But even fixed-rate deals won’t last forever. It is estimated that around 1.8 million mortgages will end in 2023. This means homeowners need to look at refinancing at much higher rates.
Commentators predict that interest rates will stabilise soon.. This means that the housing market will take some time to recover in terms of prices as well as activity. A crashing or weakening housing market is bad news for many, but it can also be an opportunity. Those who have the means will be able to bag themselves a bargain, as many have done after the financial crisis of 2008.
One thing sellers should keep in mind though is that even if house prices fall by 12%, they will still be higher than before the pandemic. This is because over the past two to three years house prices have risen on average in most places by over 20%.
The way to capitalize on that increase is to ask how to maintain or in some cases increase the value often without huge investment or indeed use Mau Investments to fund the work. And then assist you in marketing the property together with your Agent to ensure you get the price you deserve.
Mau Investments - Property Solutions made easy
dennis@mauinvestments.co.uk or Tel: 01 33298166
Posted: Wed 29 Nov 2023