The question currently on many people’s minds…is now a good time to buy a house? With house prices continuing to rise, people are worried if they will get left behind if they don’t buy now. There is also the worry that if they do buy will they regret it if prices crash.
There are a lot of risks when you purchase a house however with the recent announcement from the government about the new mortgage guarantee scheme, things are looking positive. The government are supporting the housing market in order to avoid a crash in the near future.
We are advising our clients in the current market to avoid getting carried away in any bidding wars and only pay what they can afford for a property.
House prices are likely to increase even more, especially as demand will increase once the latest lockdown restrictions are lifted. The removal of restrictions should boost the supply of properties coming onto the market. The extension of the furlough scheme until the end of September will also keep property prices high.
The most important thing while you are living in the property is whether you can afford the monthly mortgage payments. House prices are only really an issue when you come to sell or remortgage. Avoiding negative equity is another factor, where your mortgage is worth more than your home. The best way to avoid this is to start the home-buying process with the largest deposit you can afford.
Trying to work out if now is a good time to buy is very hard to do. You should really be thinking about the property you buy as being a home rather than an investment. If you do that in this current climate then you will feel more settled.
If you are a first-time buyer then it could be a good time to buy a house. Not only do you have the extended stamp duty holiday but the government has recently launched the new 95% mortgage scheme. The scheme helps first-time buyers or current homeowners secure a mortgage with just a 5% deposit.
When is a good time to buy a house?
Traditionally, spring is the best time of year to buy because more properties come onto the market. People are interested in completing on any house sale before the summer holidays which means August is a quiet time of year. Then listings increase again during September and October and drop off towards the Christmas period. If you want to sell your house, we advise to get your property on the market from March onwards to take advantage of the longer days, warmer weather and traditionally more house-hunters.
If you would like to discuss whether now is a good time to buy a house for you, then please get in touch to arrange a call or meeting.
Please note: Your home maybe repossessed if you do not keep up repayment on your mortgage.