Stormy Seas Ahead for the Property Market?

At Miller Town & Country we are proud to provide honest and transparent advice at all times, as we believe that arming ourselves and our customers with the real story is where the power lies, vs. burying our heads in the sand and missing out on opportunities.

Therefore while we definitely won’t be indulging in the scaremongering of the mainstream media, we also shy away from a rose-tinted view, as no one benefits in the long-run. So, lets dive into the current state of the economy a little, and what that might mean for current and potential homeowners.

Stormy seas ahead?

It is hard to avoid media reports on the state of the economy at the moment, and certainly this is causing concern for many of us at the moment. The Bank of England have recently increased their rate from 1.25% to 1.75%, the sixth interest rate increase in a row, and the largest in 27 years, following an increase from 1.0% in June. According to focus-economics.com, the main driver is that the Bank of England wants to slow down the rapidly increasing inflation, which it has warned could pass 13% later this year. This increasing inflation outlook is based on an expected increase of the energy price cap in October and a continued tight labour market.

The Organisation for Economic Co-operation and Development (OECD) paints a similar picture with inflation continuing to increase in 2022 and a predicted stagnation in GDP in 2023. The OECD expects households will continue tightening their belts as the cost of goods continues to go up at the same time higher interest rates make existing mortgages more difficult to handle.

These factors will undoubtedly impact the housing market in the coming months and arguably have already started to influence it. A weakening economy with rising inflation and increasing interest rates could impact your ability to comfortably cover your mortgage payments, which might have you considering reducing your outgoings by moving to a more affordable home. If you had been thinking about moving sometime in the next year, we propose that it would be prudent to act sooner rather than later.

Why Act Now?

• Although the housing market is showing signs of slowing down, overall there is still more demand than supply….for now
• With the forecast economic headwinds, we see the supply and demand imbalance likely to begin to equal out in the coming months
• As supply and demand equals out, achieved prices (the price a property actually sold for, often different to the price originally listed for) are likely to level out
• Acting now will put you in a more advantaged position vs. if backed into a corner with less options available to you later down the road

Let us help you navigate back to calmer waters

• With decades of collective experience (we’ve been through this before!) and a team of Property Professionals, we believe no other Okehampton or Tavistock agent is better placed to guide you through these uncertain times
• We will provide realistic and transparent advice on marketing strategies and pricing options – we WILL NOT simply tell you what you want to hear
• Our Above and Beyond as Standard service starts from the moment we meet, runs through to the time when your property has exchanged and completed and, we hope, continues into the future – we are honoured to act as trusted advisors for our clients around all things property, even when they are not buying or selling
• If you are wondering about your current mortgage and whether better deals are available, then we can arrange for an independent financial advisor to get in touch and review viable options that might better suit your needs

Call us on 01837 54080 or 01822 617243

For honest and professional advice on the best way forward for you and your property, and a FREE NO OBLIGATION valuation on your home.