Half way through, is the housing marketing flourishing?
It is difficult to get an understanding of the housing market right up to date, but you can get pretty good statistics from around 2 months ago. In June the housing pricing index was released and it tells us a whole host of things, primarily, what the price of houses are.
The economy of the housing market
Which means, very simply, we can understand if it is going up or going down. But we can also compare it to last year and get an idea of pattern and how the housing market is behaving. We are coming out of a very strange time, and strange times mean an unbalanced economy. Then on top of that we have inflation issues, supply chain issues, energy hikes and so on and so forth.
Then does this effect the housing market. Well it can do. The main reason is if people feel they have money and they can earn more then they will spend more. If you feel comfortable you will buy things. This does apply to the housing market. If people are earning money and earning more money than they need to spend, then they can look at newer houses. That is a general rule.
How does the housing market go up.
Well generally if there are more people looking to buy houses than there are people selling then the market tends to rise. Again as a general rule. But really it’s the flow of buying and selling, people moving on to bigger or different properties that really fuels a healthy market.
So on all those notes how is the housing market going:
These are the main points from the report in April 2022 – that can be found here
(This links to a site outside of Coleshill Mortgages. Coleshill Mortgages are not responsible for what happens if you link to this site)
The main points as written in the report:
”
- UK average house prices increased by 12.4% over the year to April 2022, up from 9.7% in March 2022.
- The average UK house price was £281,000 in April 2022, which is £31,000 higher than this time last year.
- Average house prices increased over the year in England to £299,000 (11.9%), in Wales to £212,000 (16.2%), in Scotland to £188,000 (16.2%) and in Northern Ireland to £165,000 (10.4%).
- London continues to be the region with the lowest annual growth at 7.9%.”
As you can see generally everything is going up, but the economy is volatile and this is reflective of the pandemic having caused a delay or back up of deals going through. And you can see that in the graph below with the spikes and dips. But generally from last year, properties have gone up by an average of 12%.
What we will say is do not make any rash decisions, consider any options fully and ensure you speak to someone you trust if you are looking to sell or buy a property.
(Your house maybe repossessed if you cannot keep up repayments on your mortgage)