At Coakley & Theaker, we take immense pride in offering the most dependable level of service in the Bury St Edmunds housing market. We know the local area inside out, we stay in touch with what is happening nationally, and we work hard to ensure you know how things affect you.
Robert Gardner, Nationwide's Chief Economist, comments: “UK house prices edged up by 0.2% in June, after taking account of seasonal effects. This resulted in the annual rate of growth rising from 1.3% in May to 1.5% in June, leaving prices around 3% below the all-time high recorded in the summer of 2022.”
If you’re considering selling your home, it's essential to understand the current housing market dynamics. Over the past year, we've observed a broadly flat market, with the total number of transactions down by approximately 15% compared to 2019.
This decline is even more pronounced in transactions involving a mortgage, which have fallen by nearly 25%, a clear indication of the impact of higher borrowing costs. Interestingly, cash transactions have bucked the trend, with volumes actually around 5% above pre-pandemic levels.
Despite a stronger earnings growth compared to house price growth in recent years, this has not been sufficient to counterbalance the effects of elevated mortgage rates. These rates remain significantly higher than the record lows seen in 2021 following the pandemic.
To put this into perspective, consider a five-year fixed-rate mortgage for a borrower with a 25% deposit. Back in late 2021, the interest rate was a mere 1.3%, but in recent months, this has surged to around 4.7%.
Consequently, housing affordability remains a significant challenge. For instance, a borrower on the average UK income looking to purchase a typical first-time buyer property with a 20% deposit would face monthly mortgage payments that equate to 37% of their take-home pay. This figure is well above the long-run average of 30%, highlighting the current financial strain.
As you navigate the decision to sell your home, it's crucial to be aware of these factors and how they may influence your selling strategy and the potential buyers' affordability. Our team is here to provide you with expert guidance and support through every step of the process.
We like to know what leading industry specialists say, and the CEO of Propertymark has spoken on this topic.
Nathan Emerson comments: “It’s especially positive news to see further progression within the housing market year on year, with affordability and confidence returning, despite interest rates remaining high currently.”
Nathan Emerson also said: “Once the political climate fully settles down following the general election, the housing market will hopefully see yet more buoyancy. Propertymark remains keen to see plans from policymakers as to how any incoming government intends to kick start their proposed house building ambitions, as well as learn more regarding any programme of support for first-time buyers.”
We appreciate the General Election has been yet another thing that has caused some buyers and sellers to pause their activities in the housing market. Now it is behind us, if you are looking to take your next move seriously, we are here to assist you.
At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.
Bury St Edmunds, Suffolk 01284 769691 or 01359 256821 or 01449 737706 or 07803 138123
Email: [email protected] or [email protected]
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