A buyers market

Despite the recent cut to the base rate of interest, the UK remains largely a buyer’s market, with only Wales seeing an increase in house prices during the last half of July, first half of August.

Estate agents now have stock levels that are far higher than they would like, with the average now being seventy-two properties. Many are now refusing to take on further properties if the sellers want to set an asking price that is higher than they believe is realistic.

House prices across England have seen a reduction, with the south-east seeing the largest fall, with the average property dropping 2.2% of its value over this period, knocking over two thousand pounds from the average house price.

This may seem to be bad news, however it is quite the opposite – lower prices tend to bring more buyers into the market and stimulate sales. While the value of your home going down might not be what you want to hear, as the falls are countrywide buying a new home will cost you less, so it balances out to a large extent.

With sellers adjusting their asking prices to more realistic levels, estate agents are confident that the market will begin to liven up, that is not to say that they think prices will begin rising again, that may be some time off yet. Before prices can begin to rise, more first-time buyers will need to enter the market, and that may yet require further drops in the interest rates to stimulate.

Reductions in interest rates along with high stock levels in estate agents are good news for those looking to buy, especially those who are first-time buyers or who are keeping their existing property.