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And over half (53%) would consider downsizing to help their children financially through their student years. “Activity in the more expensive price brackets continues to hold up strongly, so we expect to see a higher than normal spend in 2022. That said, it’s difficult to see how spending next year can match the extraordinary levels of late across the market as a whole without such a mix of strong drivers. Approvals for remortgaging rose slightly to 41,600 in October (the Bank’s data only captures those remortgaging with a new lender).
January: January Prices Climb Following December’s Fall
Online property website Rightmove says asking prices were almost flat in February, confounding expectations that values would fall, writes Laura Howard. This is the highest discount off asking prices in five years, which Zoopla says is further evidence a buyers’ market is taking hold. With the latest inflation figure for February – also published today by the ONS – higher than expected at 10.4%, the likelihood is growing that the Bank rate could be pushed up to 4.25% or even 4.5% from its current level of 4%. The Bank of England’s latest announcement on interest rates, which largely determine the price of mortgages, is due at midday tomorrow (23 March). Northern Ireland saw the strongest growth in the 12 months to January at 10.2%, bringing the value of an average home in the country to £175,000.
Dec: Bank Of England Mulls Removing Mortgage Affordability Test
Last month’s year-on-year price increase is down from the 6.5% annual growth reported in December 2022, and the 8.6% year-on-year growth seen in January 2022. However, the Office for Budget Responsibility is forecasting that inflation will fall to 2.9% by the end of the year – sooner than previously forecast. Coupled with turmoil across the international banking sector – some of which is attributed to rising interest rates – this may encourage the Bank to hold its key rate this time around. Rightmove, the online portal used by estate agents to showcase properties, says the average price of properties coming onto the market in March is up 0.8% on last month, standing at £365,357. The national average house price has dropped by £1,100 from £260,800 in February to £259,700 in March, according to Zoopla.
Home prices could fall in some U.S. cities. Here's where and why
During the pandemic, baby boomers, families, and investors flocked to the city, bidding up prices to mind-boggling new highs. Paul Reddam, an Austin real estate agent with Homesville Realty Group at Compass, says sellers are feeling the effects of the greater inventory and lessening demand. Essentially, it comes down to there not being enough homes — particularly starter homes — for the number of people who want to become homeowners. Mortgage rates can help temper or stoke that demand, but the larger problem is the lack of available homes. Real estate is an appreciating asset, which means that home values typically increase over time. Though they do drop occasionally, like they did during the Great Recession, prices have historically trended up.
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Use a mortgage calculator to estimate your monthly housing costs based on your down. But if you’re trying to predict what might happen next year, experts say this is probably not the best home-buying strategy. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in. Home Affordability Report, property data provider Attom found that median-priced single-family homes remain less affordable than the historical average in over 95% of U.S. counties. Amid a high percentage of homeowners still locked in to low mortgage rates, home builders have been picking up the slack.
“Agents report that buyers who have yet to sell are being out-muscled by buyers who have already sold subject to contract. Proof that you are mortgage-ready, or can splash the cash without needing a mortgage, will also help you to get the pick of the housing crop,” he added. UK property transactions bounced back in August 2021, with seasonally adjusted transactions up 32% from the previous month to 98,300, according to the latest data from HM Revenue & Customs (HMRC).
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House prices fell by 0.4% on average last month, according to the latest data from Halifax. It is the sixth consecutive monthly fall in prices, as the housing market adjusts to the impact of higher mortgage rates, writes Jo Thornhill. London, which has the highest average house prices at £536,000, saw a drop in annual house price growth with a fall of 1.4% in the year to August. Prices continue to fall the most where average house prices are highest (London and the south of England).
“While consumer confidence stabilised in November, sentiment remains well below the levels seen during the summer, partly as a result of a sharp increase in the cost of living. Moreover, inflation is set to rise further, probably towards 5% in the coming quarters. Northern Ireland continued to post double-digit annual growth at 10%, with an average house price of £169,348. Average UK property prices fell by 0.7% in December 2021, the second slight dip in consecutive months according to the latest data from Rightmove. Zoopla said buyer demand shaped the UK property market in 2021, with levels running on average nearly 16% higher than last year.
The numbers of people looking for properties to rent rather than buy are up sharply, according to new research. Since the beginning of November almost £7,000 has been wiped off the value of a typical UK property, which now stands at £285,579. The slowdown has hit demand in parts of southern England, including east Kent, Portsmouth and Torquay, along with the Lake District and mid-Wales. However, the cost of UK property is still higher than at the start of 2022 and more than 11% more than the start of 2021, says Halifax. The company added that homeowners made six-figure gains last year in just over half (173) of all local authority areas in England and Wales, compared to a figure of 116 in 2021.
For example, Northern Ireland saw prices up 4.5% over the year, while Scotland also recorded a modest annual increase of 0.5%. The south East of England saw the biggest fall in prices of any region last year, tumbling by 4.5%. The average property price in the region now stands at £376,804, £17,755 lower than a year ago. A turn of fortunes for London and the East of England has seen these regions leading the New Year rebound in buyer demand, according to Zoopla. Most other areas recorded below-average increases in demand, typically rising in line with last year or only ahead by single digits. Research on the first-time buyer market by Halifax, also out today, shows the average first-time buyer deposit is now at £53,414.
Areas that experienced the most dramatic price increases could see even bigger drops, he says. Just about all economists agree this is different than in 2008, when the bottom fell out of the housing market. Morgan Stanley thinks home prices will fall 7% from peak to trough; Goldman Sachs predicts a 7.7% drop.
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