Thinking about buying a house? You’re not alone. The COVID pandemic has had a surprising impact on the housing market in the UK. Home sales increased, alongside rising house prices thanks to the growing demand caused by low-interest rates and the Stamp Duty break making it easier for people to get on the ladder.
You might have heard about a lot of people who have had success selling their homes this year, but is it the right move for you? Here are 4 things to know about buying a home right now.
2022 looks set to be a less manic year for buyers
Buyers faced all kinds of problems in 2021, with bidding wars and online buyers making it difficult to find a property that was both available and within your price range.
If that was enough to put you off buying this year, then it’s better news for next year. 2022 is predicted to be ‘busy, but less frenetic’ for buying a house, with rising interest rates easing a little of the pressure.
House prices could continue to rise
Rising house prices are great for sellers, but it does mean that the house you buy will also have a higher price, making your overall profit much smaller. You’ll want to look at the cost of selling your house, as well as get a detailed valuation to make sure it makes sense financially for you right now.
Be prepared for unexpected twists and turns
The house buying game is full of thrills at the best of times, but it’s an even more difficult period right now. The competition for sales is fierce, and you’ll need to be prepared to increase your bid to stand a chance of having an offer accepted. You can expect delays thanks to longer processing terms for mortgage applications and legal paperwork, and you could also deal with the sale falling through at the last minute, something that can cost you financially too.
If something goes wrong during the process, you could look at a bridging loan to help you cover the cost of your purchase while you wait for your own to complete. This bridging loan calculator here can give you useful information about bridging loans. It’s good to be prepared in case of any unexpected twists and turns.
If it’s the right time for you, go for it
There are always reasons for buying a home, or not. It’s easy to be influenced by others, but if it’s the right time for you, you should go for it. The housing market can be unpredictable, and if you wait for things to change it could end up going the opposite way to what you were hoping for.
Buying a home is an exciting chapter, and it’s good to keep an eye on the market and property trends to help you work out what you’re getting yourself into. It may be early to predict what the new year will bring, but it could just be the year you find your dream home.
