Should I buy a house now or wait?
Whether you should buy a house now or wait depends on your circumstances and the current real estate market conditions in your area. Consider factors such as your financial stability, job security, interest rates, and housing market trends. It also depends on how urgently you want to own your own home. We predicted that mortgage interest rates should stabilise in 2023, returning to a level typically seen before the pandemic around the 4% – 4.5% mark.
There are already signs of the tide turning, as although interest rates began to rise earlier in the year, since the start of August they have been slowly falling. The Bank of England (BoE) has increased its base rate 14 times in a row, causing lenders to increase their mortgage interest rates in response. This made monthly mortgage payments more expensive, which could mean 2023 is not a good time to buy a house.
However, there is no guarantee that rates won’t rise further, so if you are in a position to buy now it could be better to get on the ladder sooner instead of waiting until 2024. Data shows that fewer home buyers are enquiring at the moment, this reduces the demand in the market, which in turn could lead to lower house prices.
The BoE has also warned it may increase the base rate further to curb inflation, meaning house prices could fall even more in 2023. The impact of rising interest rates on rents is another thing to consider. If mortgage interest rates continue to rise, this will have a knock-on effect on monthly rental prices. This could see you spending more on rent than on mortgage payments.
Owning your own home could mean you will be spending less each month, as well as building equity in a property you own and giving you stability in an uncertain market. It might be helpful to consult with a financial advisor or a real estate expert who can analyse your specific situation and provide personalized advice based on the current market conditions. Additionally, carefully weigh the pros and cons, and make a decision that aligns with your long-term financial goals.
If you are tilting more towards waiting, then you can decide to wait but if you are thinking of making the step onto the property ladder, it’s worth getting in touch with a mortgage broker to find the best option for you. Most mortgage offers are only valid for 6 months and you want to ensure you have got the best offer for your situation to boost your buying budget and get a deal done. Remember that you can always get another offer If you don’t see any good house or deal that suits you
