Housing Market Expected to Attract Few Home Buyers Throughout Year

Housing Market Expected to Attract Few Home Buyers Throughout Year

The latest poll by the Royal Institution of Chartered Surveyors (RICS) taken in March gave a less than optimistic outlook on the rest of the year for the housing market. The surveyors reported a chilling of sales throughout 2019 as home buyers continued to exercise caution. Much of the cause for the reluctance to jump into the housing market is being blamed on Brexit.

Properties are taking approximately 19 weeks to sell with the southeast area of England taking the longest to sell at an average of 21.5 weeks.

RICS reported, “The ongoing decline in new instructions being listed for sale has intensified of late.”

The lack of new houses coming into the market usually bumps up demand to raise prices in the market, but because of Brexit the demand is lowered in an unusual situation. The situation is therefore expected to keep hopeful home buyers away from the market in the months ahead.

What could very well boost the market are several factors, one of which is the spring season. Spring normally brings buyers to the market as the weather changes and daylight lengthens. Home buyers could also be motivated by the continued low interest rates offered by lenders. There is also the expected easing in lending that could occur with lowered loan to value mortgages bringing opportunity to first time buyers.

While home buyers could continue to be cautious, there are factors that could make the current situation too good to pass up and a save from falling house sales might evolve.

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