After all the goings on of the last couple of weeks and the continuing uncertainty surrounding the UK economy, we felt it was time to sit down and put together some information to help you through and to give you an idea of what we might expect to see in the short to medium term.
Of course, anyone who tells you they know how the market will be in two, four, or six months time is lying or guessing! We can draw on our experience of previous economic shocks, most recently from 2008-2010, but these are a different set of circumstances altogether and we don’t have the benefit of hindsight that we have when looking back to the last credit crunch. As we came out of the summer, it was starting to feel like we were past the peak in terms of activity and demand levels, with that particular curve starting to flatten. Demand continues to outweigh supply in many sectors though, and based on the principles of good old fashioned economics, that should stabilise prices.
What does that mean for buyers and sellers?
It means that days of packed-out open days, a dozen offers per property, and sealed bids may be over for the time being. However, we’re not quite ready to call an end to what has been a sellers’ market. Will this change further over the next few months? Perhaps, but the mortgage market has to free up a little before that happens to any major degree as a buyers’ market is only possible if buyers have viable financing options.
Think Long Term
Anyone looking to purchase a new home should, and needs to, be looking long term. Market trends over time show a gradual growth and the effects of the economic shocks in the early 1980s, 1990s and the 2008-10 credit crunch were relatively short lived for most in this particular part of Wales. If you are planning to be in your new home for two to five years at least, there is still reason to be positive about things.
And what about home owners?
Of course, the current flux doesn’t only impact on those looking to buy and sell. Anyone about to see the end of their current fixed mortgage term will know more than many the effect this is having on personal finances, with large increases in monthly mortgage payments becoming the norm. There are options though, and in Penarth we are lucky to have a number of local, well-respected financial advisors and mortgage brokers to call upon.
Rental demand remains very high. Of course, the cost of borrowing an legislative changes are giving landlords more to think about, but good quality, well-managed rental properties will do well. Bricks and mortar are still seen as a relatively safe investment amid the chaos of the financial markets, and that can deliver good, steady returns.
Whatever happens, we are here to guide you through all the aspects of the property market as we’ve been since 1969. If you have any questions or concerns, our door is always open so please us a call on 029 2070 2622, drop us an email at firstname.lastname@example.org or pop in to see us at 2-3 Station Approach, Penarth.