The question of when to buy a house is very common among prospective buyers who are itching to move up the property ladder. However, predicting prices and trends in the UK is no easy task as the property market keeps on producing mixed signals. What is certain is that people will still move, rent, sell and purchase homes and other properties.
Having said that, historical records reveal that there are some months in the year when buying activity is reduced. During these quiet times, only a few buyers are usually available, signifying reduced competition and more bargaining power on the side of house-hunters. If you get sellers who are keen on making a quick sale, you might even get a much better deal for yourself. Traditionally, these months have always been December and January, and the slow activity can be attributed to many people focusing on the Christmas festivities and the cold weather being unfavourable for house-hunting. For many home buyers, these are usually the best times to make a purchase. If these trends stay true, January 2015 may be a suitable time to dive in. Good weather usually brings along many frenzied buyers, and the increase in demand may result in property prices shooting up.
Experts are predicting that a combination of new mortgage regulations and the possibility of interest rates rising could lower property prices for the first time since 2010-2011. Prices in the UK housing market have continued to rise over the years, defying gloomy trends in most leading global economies. This may change slightly in 2015, and the coming election may inject even more uncertainty into the market. House hunters may therefore choose to wait until the prices begin to fall so as to make a move. In fact, studies are showing that the average asking price for houses on sale has dropped in England and Wales by about 3.3%. This is may sound like a good incentive for house hunters to bid their time, but the housing market is very complex and this could easily backfire. The Centre for Economics and Bureau Research expects the growth of house prices to fall marginally by about 0.8% in 2015. This still means that house prices in the UK will rise by 5% in 2015, although this figure is smaller compared to 7.8% last year.
The forecasts, and the unpredictability of the market, show that delaying the decision of when to buy a house may not always be a good idea. Experts therefore advise that if you spot a great property that you can afford now, there is no point in waiting for house prices to fall, because it may not happen.
On the other hand, it is always prudent to evaluate your finances in order to make the right decision. Impulse-buying of mediocre property may come to haunt the buyer in the event of market prices falling and offloading the house turns into a nightmare. There are many bad properties on sale hence it is better to be sure before you commit yourself. The demand is still high, and prices will continue to rise in many parts of the country. London, in particular, is projected to experience a rise of 24% in the next five years. This is phenomenal, and it may suggest that waiting, expecting the market prices to dip, may not be the best idea.