Nationwide, a prominent mortgage provider, reported a mere 0.2% rise in house prices in March, the smallest hike over nearly seven years. The company pointed out a noticeably slowed real estate market with decreased demand for homes since the end of the previous year.
Conditions like pandemic-induced economic strain contribute to the downturn, contrasting starkly with the previous year’s buoyant market. Nationwide suggests that this sluggish pattern may continue for a foreseeable time.
Despite the unfavorable circumstances, some areas show dependable pricing, reflecting market resilience. Real estate experts believe this phase to be momentary and predict a rebound once the economy recovers. They recommend buyers and sellers to stay alert for a potential market surge.
Political instability may influence this slowdown, though situations radically differ between regions. An interesting dip has been witnessed in London’s house prices, whereas the Midlands and North regions observe modest increments.
In March, the annual house price growth drastically fell to 0.7%, a major fall from January’s 2.2%. This is the slowest growth rate since February 2013.
Minor uptick in house prices amid downturn
The property sector is not only being pushed to an all-time low; the commercial property market is equally affected, with poor rates compared to previous years.
The current data suggests a possible recession in the property sector until the market rebalances. Rumored to be a slow process, the recovery would depend on various factors, including increased employment and improved economic context.
Significant slowdown is noted in London and the South East, along with Wales, Scotland, and several northern towns. Conversely, Northern Ireland projected a slow price rise, and the Midlands and the North West maintain stable prices. This cooling property market is seen as an opportunity for first-time buyers; however, estate agents face challenges attributed to this slowdown.
The upside to this stagnation is increased value for money for shoppers amid a steady property supply. There’s been a slight rise in mortgage approvals, suggesting potential buyer-friendly conditions. On a regional level, market performance differences indicate opportunities for both buyers and sellers.
Although currently in stagnation, the housing market is not on the edge of complete breakdown. The task of forecasting future trends has become difficulty-laden with Brexit looming. Analysts continue monitoring market trends and demographic changes that can potentially impact the housing sector demand.
