Spring has always proven to be the best time to put your home on the property market. However, the trend is different as the property market continues to recover from the effects of the Covid-19 pandemic.
So, before putting your house on the market you need to ask yourself, ‘Is now a good time to sell my property?’.
Yes. Going by the surging demand in houses with demand almost outstripping the number of houses for sale by a significant margin, there’s no better time to sell your home than now. Low mortgage rates mean it is less expensive to borrow money and easier to find a cheap mortgage deal for buyers. There are more buyers bidding for property than ever before. Buyers are going all out to secure desirable properties even in sought after areas.
It’s a seller’s market.
But should you sell now or hold on until later?
Let’s find out.
Why is there an increase in the house prices?
As you know, the pandemic was a re-set of sorts for most industries. The COVID-19 restrictions paralyzed the property market for a long time, resulting in pent up demand. With easing of restrictions came an in increase in demand and an increase in property prices by up to 7.4% in September. This is partly because of the stamp duty holiday that has since expired. Access to affordable mortgages has also contributed to an increase in the number of property buyers, giving sellers an added advantage.
The Office of National Statistics shows that house sales were up at 98,300 in August compared representing a 20.8% increase compared to the same month in 2020. This, as buyers were keen to take advantage of the stamp duty holiday.
Although the stamp duty holiday ended in September, there are no signs of a drastic drop in prices as buyers are still in the race for space. The property market is now seeing the return of first-time buyers that are continuing to fuel the market. This, even as experts in the property industry continue to assess what it means to live in the post-pandemic world.
Should you sell your house in the UK now?
The soaring prices of properties means sellers are at a greater advantage.
The availability of cheap mortgages means that even with the high prices, more buyers can access financing to purchase their dream homes. However, you need to watch out for a fall in house prices.
- With the furlough scheme ending in September, more people may lose their jobs, resulting in the inability to service their mortgages. If we have more people selling their houses, there’s likely to be an oversupply of that could cause a fall in prices.
- An increase in the interest rates could see an increase in mortgage rates, thus slowing demand.
- The end of the stamp duty holiday will certainly see a decrease in the number of people buying property.
Overall, the general outlook is promising but there’s no guarantee things will stay as they are for long. If you’re ready to sell your house, this is the time.
Is now a good time to sell my property?
What we’re witnessing is a seller’s market. This means you can get a great rice if you sell your house now. This will particularly work for you is you want to move to a cheaper area, or you simply want to downsize. Selling your property now is a good idea if you want to sell rental property but don’t need to buy anywhere else.
However, you also need to keep in mind the historical trends in the property market giving the re-programming that came with the pandemic. In normal circumstances, listings and selling opportunities would pick up in the months of September and October, after a quiet August when most people take time off to enjoy summer holidays. Then comes a drop towards the end of the year as Christmas holidays beckon. This means the worst time to sell your house are the months of August and December.
Despite all the factors pointing to it being a good time to sell, you can’t ignore the fact that there are lots of uncertainties too. Thus, it’s up to you to decide if you should sell your property now. Even with the surging demand, your property may still stay on the market for a while, especially if it is not market ready. If you’d rather not have an estate agent selling your house, then you might sell to a quick house sale company. These property investing companies will buy your house at any time of the year and will complete the transaction within a short period, usually 14 days.