It’s fair to say that over the past few years, the economy has suffered significantly. The implications on home prices have been felt as a result of both Brexit and the repercussions of COVID-19. Throw into the mix the cost of living crisis, and we’re now in a position where it is much more difficult for first-time buyers to secure a position on the property ladder.
Comparing the statistics of 2021 with the summer of 2022, the average property asking price increased by almost 9.3%. Many first-time buyers are now treading carefully and postponing any decisions for investment whilst they wait to see how the housing market develops over the coming months.
Experts predict that this year, the housing market will experience its first dip since 2012 and that prices will likely fall by around 5% over the next few years, as a result of rising interest rates. Economists have also predicted a cut in the price of homes in 2023, albeit a very, very slight reduction at that.
Whilst it seems unlikely that the housing market will crash this year and there’s enough evidence over the years to suggest that the property market is pretty resilient, the housing market does remain particularly unpredictable for 2023. As much as we would love to be able to look into a crystal ball and anticipate the future of property this year, the uncertainty makes it hard to hazard a guess. However, what is seemingly obvious is that a downturn in the market is certainly necessary to create some sense of certainty and security and therefore encourage more first-time buyers.
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