House Prices Increase in October Revealing Confidence of Home Buyers
Experts were surprised at the latest data showing house prices increased in October. The expectation was for there to be a long stall and perhaps even a few dips. Yet, homebuyers have been resilient and have taken the opportunities in front of them and climbed onto the property ladder with low interest rates and confidence in their future.
Halifax reported a 1.4% increase in October of the average house price after a modest 0.3% increase in September.
There was a 5.2% increase in the three months to October compared to the same time period in 2015.
Howard Archer, chief UK and European economist with HIS Markit, remarked, “With the economy currently resilient, house prices may well rise modestly in the near term. We believe housing market activity is likely to be increasingly pressurised in 2017 by heightened uncertainty constraining consumer confidence and willingness to engage in major transactions, as well as hampering economic activity.”
With continued low interest rates and the availability of long term fixed rates, it may well be the best time for first time buyers and home movers to consider purchasing a property. Lenders are still very competitive and borrowers are optimistic in their ability to secure a mortgage.
Meanwhile, the continued growth in house prices will be comforting to homeowners and that should fuel more of them to secure a cheap interest rate remortgage and take advantage of the opportunities to get a new attractive deal of their own.