News

Market Update 14 September 2016

The story rarely changes these days, lower end of the market plodding away, but higher end quiet.

Interesting figures just released from the Council of Mortgage Lenders show borrowing dropped in July, down 14% on June and down 13% on July 2015.

First Time Buyers were also down, 19% on June and 4% on July 2015.

House movers, the biggest market share were down 9% on June and 16% on July 2015.

The biggest revelation again was the extent of the re mortgage market, up 7% on June and up 20% on July 2015. A 7 year monthly high. It would seem the trend of extending one’s home is growing.

This may be exasperating for those hoping to move, but it is a good sign!

After every recession the housing market first stagnates, then re mortgages kick in, some to tidy up finances, then to extend homes rather than move, then the final phase of full recovery is house moving. It would seem we are not quite there yet, but well on the road.

These figures were for the period prior to the Bank of England’s announcement of a rate cut, so we may see more of this in the subsequent months as mortgage rates gradually reduce.

Surely the penny will drop soon and people will see there has never been such an opportunity to buy.

 

Bill Reid

Reid Estates

01738237337