We read with interest a recent article in the Guardian which stated that more than a third of home owners trying to sell their home have been forced to reduce their asking price, the number of price cuts at its highest since 2012. This article echoes the subdued theme from most property websites and professional bodies. Unfortunately, or is that fortunately, Brexit has curbed the ever-increasing house prices but perhaps this is for the best? If we think back to pre-23rd June 2016 house prices were rising at their fastest rate since pre-2008 Lehman brothers financial hiccup.
When house prices are rising at such a pace, the media report the disgust of people who cannot afford to live in areas that they grew up in, or that we are going to have to sell Grandma’s rocking chair and Grandad’s medals to give the kids some cash for their huge deposit for their first-time home. In a more stable economy purchasing a property is fraught with its own issues – gazumping, manic block viewings and ridiculous asking prices for houses are common place. In times like this we should consider previous house price trends and data. Whilst it is apparent that house prices do appear to be falling if we look at previous market history house prices have always increased after a period of reduced growth.
The reality is that no one knows what is going to happen over the forthcoming period but we should accept the situation and not let this deter us from our life goals, after all it is all relative. If you are buying your first home then great, prices are cheaper. If you are buying a larger property then yes, you may not get as much for your current home but the house you are purchasing will be less so that’s okay too. On the opposite end of the spectrum if you are retiring then the same applies, you will not get as much for your 4 bed family home that the kids grew up in but that 2 bed bungalow will be cheaper so go and spend the rest of the kids inheritance.
So, let’s be positive and look for the opportunities that exist!