Homeowner warning: Sell now before demand for homes comes to a ‘screeching halt’
HOMEOWNERS are being warned to sell as fast as they can to benefit from high house prices before the feared property market crash.
By Aliss Higham
14:00, Sat, Sep 3, 2022
House prices: Expert discusses ‘interesting’ pricing differences
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A surge in the value of homes on the market throughout the UK is expected to end amid the cost of living crisis and surging interest rates. It comes after two remarkably buoyant years, sparked by the suspension of Stamp Duty and lack of supply of new build homes.
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Buyer confidence is getting lower as borrowing costs continue to climb and a looming recession puts people’s financial plans on hold.
As of August 17, UK inflation stands at 10.1 percent, up from 9.4 percent two months earlier.
This is expected to rise throughout winter and into 2023, with a potential peak at 13.3 percent in October predicted.
This is a sharper increase than the Bank anticipated in June, originally estimated at 11 percent.
House prices could dip in the coming months and next year (Image: GETTY)
It will continue to rise throughout 2023 only to eventually decline in 2024.
The continual erosion of spending power is one of the contributing factors to a predicted decline in house prices
Meanwhile, forecasts for the Consumer Price Index (CPI) are gloomier now, expected to decrease only to 9.5 percent in the third quarter of 2023, although the Bank anticipates a sharp fall in prices immediately thereafter.
Michael Hewson, Chief Market Analyst at CMC Markets, has said seller’s need to keep a watchful eye on the market in the coming months to see if a decrease in house prices comes along.
Homeowners could see their values dip in the near future (Image: GETTY)
Mr Hewson told Express.co.uk: “Houses sold in June 2022 only increased in price by one percent compared to May, whereas, last year, this constituted a much more generous 5.7 percent surge.
“This is only the first month this year for prices to slow down at such a fast rate, so some caution before jumping to conclusions is advised.
“Remember, house prices may be slowing down, but they are not decreasing.
“Importantly, since this is transactions data processed at the time, it does not take into account the big leap in interest rates that the Bank of England announced later that month, let alone the even bigger hike in August.
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