Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Property prices have well and truly come off the boil. While prices were at a virtual standstill month-on-month, they fell across all regions on an annual basis – which points to a market-wide downturn as affordability pressures continue to price many would-be buyers out of the market.
“There is a sense that many sellers have accepted that the market conditions of recent years, which saw the rise of multiple-bids and gazumping, are no longer present. Many have revised their expectations and reluctantly accepted the need to lower their asking price to tempt buyers. This attitude shift, in tandem with the fall in inflation and the Bank of England’s decision to hold interest rates at 5.25%, will fill would-be buyers with hope that the affordability pendulum is swinging back in their favour.
“However, despite falls in house prices and mortgage rates, the affordability sweet spot remains elusive for many buyers. While prices and rates are expected to wane further, trying to pinpoint the exact moment to buy is akin to predicting the weather – it requires a deep understanding of local and macroeconomics indicators, which is no small feat.”
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