Why you shouldn't wait to buy a property!
In this blog we analyse the top 3 reasons why you shouldn't wait to buy a property... If you're currently hesitating and wondering whether you should wait, you're going to want to read this one!
Should You Wait to Buy a Property or Act Now?
Over the past few weeks, several clients have asked us whether they should hold off on purchasing a property. The hesitation is understandable, with rising mortgage rates and speculation that property prices might drop in 2025.
To help you make an informed decision, we’ve taken a closer look at current trends in mortgage rates, property prices, and market activity. Here's what we found:
Mortgage Rates
Mortgage rates have increased since the Bank of England's base rate fell to 4.75%, but they remain competitive. As of today (19th November 2024), the best rate available for a buyer with a 10% deposit (90% LTV) is 4.54% on a five-year fixed term, based on a 30-year mortgage. While these rates may seem higher compared to recent years, they’re still manageable for many buyers.
Property Prices
In the Bexley and Dartford boroughs, the average asking price for the first 1,000 homes listed since 1st September 2024 is £435,653. In the same period last year, the average was £426,449, representing a 2.11% year-on-year increase.
Looking ahead, property prices for 2025 are forecasted to rise by 3-4%. Taking the midpoint of 3.5%, this would mean a difference of £15,247, pushing the average price up to approximately £450,900.
Available Stock
The property market remains active, according to Rightmove data:
New homes coming to market are up 6% year-on-year.
Sales agreed are up 26% year-on-year.
Buyer enquiries to estate agents have risen by 23%.
This shows there is strong demand, but also more choice for buyers right now, which is a rare combination.
What Does This Mean for You?
Given this data, we believe now is a great time to purchase a property. Here’s why:
Increased stock gives you more choice.
More properties on the market make it easier to find your dream home, something that becomes far harder when the market heats up.
Waiting could cost you more.
While some economists predict mortgage rates may drop to 3.5% by the end of 2025, the rising property prices could make waiting an expensive decision. Let’s break this down:
Potential savings on mortgage rates:
If rates drop from the current 4.54% to 3.5%, you would save £238 per month on a typical mortgage, totalling £2,856 over 12 months.
Increase in property prices:
With prices expected to rise by 3.5%, the same property could cost you an additional £15,247 by the end of 2025.
The bottom line: Waiting would leave you £12,391 worse off (£15,247 increase in price - £2,856 savings on mortgage rates).
Competition will increase.
As rates drop, demand is likely to surge, making it harder to find a suitable property and possibly leading to bidding wars.
Our Advice
If you’re in a position to buy, don’t wait. With competitive mortgage rates, increased stock, and the potential for rising prices, starting your search now could save you both time and money in the long run.
What do you think? Are you ready to begin your property journey? Let us know—we’d love to help you take the next step!
If you have any questions, please click below 👇🏻👇🏻👇🏻👇🏻
