Interest Rates: August 2024 Update
Property experts have noted that many people are postponing their moving plans until interest rates drop. But is this the right strategy? Let's explore the current landscape.
Context
To combat inflation, the Bank of England (BoE) has kept interest rates at 5.25% since August last year. Today, on 1st August 2024, the BoE has cut interest rates to 5.0% for the first time in over four years. So, what does this mean for homeowners planning to sell?
While the BoE is cautious about reducing rates too quickly to prevent another inflation surge, it's unlikely that we’ll see the ultra-low rates from a few years ago anytime soon.
Key Considerations
Here are some other factors to weigh up when deciding your next move:
- Market Opportunities: Currently, properties on the market are competitively priced, presenting some excellent deals.
- Market Dynamics: If many buyers enter the market simultaneously later in the year, demand will increase, leading to more competition between buyers.
- Rising Prices: As interest rates drop and borrowing becomes more accessible, property prices generally rise.
- Financial Costs of Delaying: Delaying your move could incur additional costs. For instance, if you're moving closer to work or family, you might spend more on commuting or childcare in the interim.
- Transaction Timelines: Property transactions often take longer than anticipated. If you aim to live in the catchment area of an outstanding school, having certainty is crucial.
- Emotional Impact: There's an emotional cost to putting your life on hold. Delaying a move for a few months might be manageable, but if you’re eager to downsize or upsize, waiting could leave you in limbo.
Decision Time
So, is it wiser to wait or more astute to act now? Ultimately, only you can decide what’s right for you.
When you feel it’s time for a change, we’re here to help.
For more insights about the local property market, contact us at M&P Estates today. 01708 851999 or email info@mpestates.co.uk
