How much further will property values fall in 2018?
According to the latest lenders index, annual growth has fallen by 2% in the past year and the month on month values dropped by 0.5% which is the biggest monthly fall since the year London hosted the Olympic Games.
It is a known fact that property values are falling and with the biggest drop having taken place last month, how much more is the average house price going to fall?
At the moment the average house price is £214,745 and according to Nationwide’s chief economist, the economy has been subdued and there is also a lot of pressure on household budgets which is set to continue because of uncertainty surrounding Brexit.
The knock-on effect is that, homeowners with properties they would like to sell, perhaps because they would like to downsize or they are looking to upsize or relocate, become hesitant to put their homes on the market because they cannot find a property to buy themselves.
This then creates a shortage of stock meaning that the sellers who want or need to move cannot find anything suitable so they don’t advertise their current property for sale! It’s a vicious circle of uncertainty and hesitation.
Of course, first time buyers who don’t have to worry about selling a property will likely become disheartened by the lack of stock on the market and may stop looking for their first home because they are unsatisfied by the properties available.
There is also talk of the interest rate increasing once the final deal for Brexit has been negotiated and experts predict challenges ahead for anyone with a large amount of debt attached to their home.
Negative equity could be a reality for many homeowners in the future which can prevent you from being able to move or remortgage your property and then of course, the terrifying thought of having your home repossessed may come to light.
If you are worried about the future of the property market and are looking to sell your home before the Brexit negotiations come to a close and a deal is sealed, please speak to one of our professional advisors at OK Property.
At OK Property, we are more than happy to provide you with the option of selling your home either to us or to one of our cash rich investors and perhaps removing a lot of weight from your shoulders.
We have even saved properties from being repossessed in the past because we have been able to provide a guarantee to the mortgage lender that we will buy the property so it’s never too late to call us, we’ve helped hundreds of people out of this stressful situation.