There has been a lot of uncertainty in the housing market in 2022 with house prices continuing to rise along with interest rates, making it difficult for many people to buy. As we look forward to the housing market in 2023, there are some predictions which will be good news for those looking to purchase a property.
Here, we share what is predicted to happen with the housing market in 2023 to help you to understand what’s on the cards for buyers and sellers next year.
Mortgage rates set to fall
As markets adjust to the ever-changing political outlook, it’s been suggested that we will begin to see a fall in mortgage rates towards the end of this year and into the next. It’s worth noting that mortgage rates are not expected to fall to the low percentages that we have come to expect and will instead sit around the 4-5% mark, which is certainly an improvement on what we have seen recently but may mean that it’s not worth holding out for rates to drop even lower than around 4%.
With the central banks still working to bring inflation rates down, it’s difficult to tell exactly what is going to happen with interest rates and whether these are going to have to increase further before they decrease. However, news from the Bank of England suggests that interest rates won’t reach the levels that some are predicting, which could be good news for those looking to secure a mortgage in 2023.
Properties remain in demand
Properties are set to remain in demand throughout 2023. On one hand, people will continue to look to upsize or move locations following the coronavirus pandemic. This is because many individuals are now working from home full-time and both need space for an office and aren’t necessarily required to live close to where their employer is based anymore.
On the other hand, some are starting to search for properties that are cheaper to run with the cost of living increases that we’ve seen – especially when it comes to the costs involved with heating a home. This could include downsizing to a property that is more in line with what they need, or moving out of cities and into surrounding areas where properties are often cheaper.
For more expert advice and mortgage solutions, contact our knowledgeable team of mortgage advisors today!