Housing market activity has dropped over the last year, according to reports.
There was a decrease of 12 percent in market activity over the last 12 months to September, despite an increase in valuations.
September was a good month for valuations, as they increased in rate by 42 percent compared to August, but this wasn’t enough to stimulate the market to exceed the year before.
It is thought that buyers and sellers are focusing on the new interest rate predictions, which say things are only going to become more expensive, as well as the new loan-to-income caps that are set to come into force.
However, a slowing down in the market is not necessarily bad news. Caution levels are up, and in a market that has been so turbulent for so long, this could be a good thing. Sustainability is something the housing market needs, so letting it settle into a steady stride before the interest rates rise rocks the boat next year could be a good thing.
There is also a promising sign in the number of people remortgaging. More people are remortgaging their homes, and taking advantage of the current low level of interest on the market, fixing their terms for five years. Remortgaging was up 57 percent in September compared to August, and shows people are taking the initiative and securing their finances as best they can for the oncoming interest rise storm.
The news coming from the market isn’t all bad, and hopefully means that the market is bracing itself for the difficulties to come over the next year with the rising interest rates. So while first time buyers will be having a bad time, unable to purchase their dream homes, the market should be able to weather the hardships it will face.
