Is a real estate crash really on the horizon? …

With each passing month come new statistics of high house prices, and with average prices currently averaging £ 261,743 in the UK and demand exceeding supply, there could be signs of a real estate crash on the horizon.

Are we in a UK property bubble?

We are currently in a housing bubble in the UK, where we are seeing an increase in house prices fueled by demand. Ongoing stamp holidays, mortgage vacations and considerably lower mortgage rates are all important catalysts creating a property bubble, which is why we are seeing a property bubble in the UK.

So, will the market collapse?

If the demand for real estate decreases at the same time as the supply increases, the bubble bursts, resulting in a real estate crash.

And while it might be a worrying thought, it is highly unlikely to happen in the UK. Indeed, the demand for real estate in the UK continues to be incredibly high as people continue to move away from city apartments for more spacious properties. And with many first-time buyers saving money for a deposit during foreclosure, this has only fueled demand for goods.

With that in mind, demand is unlikely to decrease to the levels necessary for a housing crash to occur. As long as demand remains at normal levels, the real estate market should remain intact ”.

When is the right time to buy a house?

All things Considered; I would say now is not the best time to buy property in UK. It is currently a sellers’ and not a buyer’s market, with house prices at an all time high and huge competition, making it difficult for many buyers to find the right home or get the best one. offer for them. It’s likely that anyone looking to buy a home right now will be overpaying for the property, even with discounts such as stamp vacations in place.

If we learned anything from the last year, it’s that the stamp duty holiday inflated house prices and made it difficult for buyers. And although the tax break officially ends on June 30, there is a staggering return to previous stamp duty rates through the end of September, so for those looking to buy, I would advise them to delay until the end of September. October – once the stamp duty holiday is over. is finally coming to an end.

While nothing can be said for sure, house prices and mortgage applications are expected to drop past the deadline as people won’t be rushing to meet the stamp duty deadline, so October could indicate a good. time to buy a property in UK.

* Ross Counsell is a director at GoodMove

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