Navigating Stable Interest Rates: October Market Trends and House Price Predictions
Over the last 12 months we have seen consistently rising interest rates, following the disastrous Liz Truss mini-budget of October 2022. This has had a huge effect on the property market with the subsequent rises in mortgage rates deterring many buyers from completing their purchase. A year on and we appear to have found some form of stability with interest rates stable at 5.25% since the last interest rate rise in August of this year.
But what does this mean for the property market? In this month's market update, we'll be discussing the stability of interest rates, the market trends in October, and predictions for the market going forward.
Stable Interest Rates
One of the major talking points in the world of real estate is the stability of interest rates. The Bank of England's recent decision to maintain rates at 5.25% sets the stage for what's to come. While this base rate isn't directly related to mortgage rates, it does provide a valuable indicator of lending conditions. We'll delve into the implications of stable interest rates and how they might affect your future home purchases.
October Market Trends
Let's take a closer look at what happened in the real estate market during October. The month seemed quite normal, which is actually quite interesting. New property listings were up by 15%, offering potential homebuyers more options. Additionally, the number of available properties doubled, exceeding figures from previous years. Sales were higher than the average of 2018 and 2019, showing that the market remains robust. We'll analyze these trends and what they might mean for you as a buyer or seller.
House Price Predictions
Everyone wants to know what's happening with house prices. While some reports suggest modest increases, we believe that prices have seen a decrease of 6-8%. We'll discuss this in detail and provide insights into potential future adjustments. It's essential to understand the nuances of the market and what they mean for your investment or homeownership plans.
Looking Ahead
The Chancellor's Autumn Statement, expected later in November, is another significant event on the real estate horizon. This statement could have a profound impact on the market. Expect discussions on various topics, such as stamp duty cuts, interest relief for buy-to-let investors, inheritance tax relief, and support for first-time buyers and downsizers. We'll closely follow these developments and provide updates after the statement.
