New Year buyers and sellers set to benefit from strong market opportunities
- 23rd December 2016
- Buying Property News
2016 closes with potential buyers benefiting from opportunities to enter the housing market, with further seasonal increase in stock in the New Year
Earlier this year, we reported that between June and September alone, there had been a 13% rise in the number mortgage deals on the market. Over the same period, the average mortgage rate also fell – from 2.99% to 2.85%.
Looking to the New Year, buyers should benefit further still from a seasonal upturn of new properties becoming available on the market, following the Christmas holiday season.
“A factor of 2016 was Parents - commonly termed as the ‘Bank of Mum and Dad’- looking to help their children get a first footing on the housing ladder who could also benefit from the better returns they are likely to receive through a property investment when compared to low-interest earning cash and alternative investment options, such as ISAs, for example.”
Despite property supply being higher than usual, the current trends are also good news for sellers. For example, there has been a 16% increase in the number of potential buyers looking for a property, which will soon see demand keeping pace with supply and a new market equilibrium will be reached with maximum prices for that market being achieved.
Whilst some sellers have, due to increased market competition, accepted competitive offers they have often benefited as once a sale has been agreed they are themselves in a strong position to move further up the property ladder and take advantage of the opportunities there.
Stephen Ludlow, chairman at ludlowthompson comments, “Attractive mortgage rates have created many opportunities to enter or move up the property ladder.
“Buyers – especially first time buyers helped by the ‘Bank of Mum and Dad’ – are further benefiting from an increase of stock, often at more considered asking prices. Potential buy-to-let investors could also be tempted by the opportunity to move into the market at an attractive price and aspirational buyers who are existing owners are trading up the property ladder – a happy balance for 2017 .”
Attractive mortgage rates have created many opportunities to enter or move up the property ladder.
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