House prices have gone through the roof, but experts have said prices could drop over the next two years as interest rates continue to rise.
Why are house prices rising so much?
- The housing market still has a reasonable amount of momentum given the pressures on household budgets caused by the cost of living crisis. But data has started to show a fall.
- Limited supply and strong demand is keeping house prices high, there are too few properties for sale compared to the number of buyers. However, growth in prices has finally started to slow down.
Should I buy a house now or wait?
- Some people, especially first-time buyers, will be hoping house prices will fall but there is no guarantee that will happen. However, a fall in house prices is looking increasingly likely.
- With borrowing becoming more expensive, the number of buyers could fall.
- Likewise, if a recession hits, the number of sellers could drop again too as people become more risk averse.
- Some homeowners are holding off selling due to a lack of available houses to buy, which is adding to the problem. Scarcity of homes for sale means buyers often end up in bidding wars to secure a property.
- While there is still plenty of uncertainty, the property market has proven to be very resilient.
What time of year is the best time to buy a house – and the worst?
- Traditionally, spring is a good time to buy a house because there are more homes on the market.
- March is generally a good time to buy a house when the days start to get longer the weather starts to get warmer. If you want to sell fast, get your property on sale in March as there are more house hunters.
- People are often keen to complete before everyone heads off on summer holidays, leaving August particularly quiet.
- Listings or buying opportunities pick up during September and October, before dropping off at the end of the year. This is because homeowners tend to stay put for Christmas.
The worst times to sell tend to be August and December.
Is now a good time to sell a house?
- It is a sellers’ market so you could get a great price if you sell a property now.
Selling now works particularly well if you are:
- Downsizing or moving to a cheaper area
- Selling a rental property with no need to buy anywhere else
