Latest statistics from Propertymark, the professional organisation for estate agents, show that while there was some softening of demand from buyers during October the overall housing market remained healthy.
What’s more, almost a third of sales were agreed at or above the asking price because while demand for homes softened so, too, did the number of people deciding to sell.
There was a bit of a rush of sales during September as people raced to beat the anticipated rise in mortgage rates but when the Bank of England announced its 0.75 per cent rise in Base Rate at the beginning of November the Governor, Andrew Bailey, said he believed mortgage rates would not rise to the forecast levels following the September mini budget and, indeed, fixed rates going forward would appear far more affordable.
Demand for homes softened compared with earlier in the year but the comparative figures for market activity between October this year and the same month in 2021 showed very little change, just a five per cent drop.
I still believe that taking heat out of the market is good for its long-term prospects. People who buy in a heated frenzy frequently get buyer’s remorse that makes them unhappy with their purchase. Those who take a more measured approach settle into occupancy in a happy state of mind and enjoy what they have bought.
It pays to remember that it’s a home first and a potential investment second. All investment advisors will tell you that values can go down as well as up but in the long term I’ve never known a property go down in value unless it has suffered a lack of love, allowing it to fall into disrepair. Then, of course, it becomes the next owner’s real investment opportunity!
Colin Shairp,
Director, Fine and Country Southern Hampshire.