call 03333 440773

Mon, Tue, Wed, Thu - 10am to 8pm

Fri, Sat, Sun & Bank Hol 10am to 4pm

Aboda Homes Estate Agents Wisbech on Facebook Aboda Homes Estate Agents Wisbech follow us on Twitter here Aboda Homes Estate Agents Wisbech home page

the specialist agent - for special homes

Blog

Welcome to my blog

 

Here you can read all my advice, tips and property market knowledge about buying and selling a high value home in the Wisbech Town & Village area

By Alex at Aboda, Aug 24 2018 09:50PM

At their meeting on 2nd August, the Bank of England’s Monetary Policy Committee raised interest rates for just the second time in ten years to 0.75%.


The small rate rise will affect those on variable and tracker rate mortgages (around 3.5 million households), although increases for most are likely to be fairly minimal.


Any mortgages taken out in recent years, specifically since the introduction of 'The Mortgage Market Regulations' in April 2014 that have been subject to strict mortgage lending affordability criteria, should have factored in such an increase. Furthermore, the vast majority of new loans are on fixed rate deals.


Meanwhile, base rates, while at their highest level for nine years, are still very low by historic standards and mortgage rates remain low.


The question potential borrowers will be asking though is, is this the start of many increases?


Another rate rise before the end of the year looks extremely unlikely though. The Bank of England has suggested that any future increases will be gradual with the next small rise (0.25%) in mid-2019 and a further one before the end of 2020.


So, "don't panic, Mr Mainwaring,"and "don't tell 'em your name, Pike."


By Alex at Aboda, Aug 24 2018 09:47PM

The Summer of 2018 has certainly been memorable - and HOT! England has enjoyed it's strongest performance at the World Cup for many years while also enjoying (suffering!) its longest, hottest summer on record.


While Brits have been off enjoying the weather, thoughts of property purchases have taken a back seat for many. However, as we return to work after the long, hot summer, history suggests that agents may see a busy autumn.


On average in the autumn following the last five driest, sunniest and warmest summers; 1995, 1996, 2003, 2006 and 2013, sales rates picked up by an average of 1.8%.


However, in all other autumns since 1995, sales have declined by an average of 8.7% compared to the summer months.


Based on the last 27 years data, this Autumn could be a great time if you wish to sell your home! So if you have been struggling with your home sale this year then do get in touch as soon as possible so you can receive essential advice to secure a buyer for your home this year!


By Alex at Aboda, Aug 6 2018 05:07PM

The housing market – including prices, mortgage approvals and rental prices – are viewed as symbolic of wider economic trends, such as in investor and consumer confidence. House and rental price growth, or lack thereof, is seen by economists, media commentators, and the public as a fundamental economic indicator, and these metrics always get a lot of air time.


Inflation measures are widely seen as the way to understand price changes across the board, but few analyses of house prices changes take this into context. Analysing the change in real house prices – that is, adjusting for inflation – can paint a more accurate picture of how price levels have changed over time. Zero nominal price growth means a fall in real terms if there is positive inflation.


While accounting for inflation softens house price and rental index growth somewhat, it still does not make for pretty reading. Compared to many other goods and services, increasing demand for houses (both for purchase and to rent) and a lack of supply has meant prices have risen quickly.


The below graph, using ONS data, shows house prices in the UK since 1990, both adjusting for inflation (real house prices), and not (nominal). The differences are clear to see.


In January 1990, the average house cost just over £58,000 – but in today’s money, this would have been nearly double this, at over £115,000. Both curves show a similar trajectory, although inflation-adjusted prices show more obvious changes, especially in their decline in the early 1990s, which is partly due to the high inflation rates (of over 7 per cent) during this period.


In the decade to January 2005, nominal house prices grew 172 per cent, whereas this was marginally lower at 131 per cent when inflation is accounted for. While inflation does lower this figure, price rises in the housing market over long periods have been very high, as has been well documented.


Most commentators like to point to house prices at the moment being at record highs. When inflation is taken into account, however, prices are shown to actually have peaked before the financial crisis in late 2007, at nearly £250,000, and have yet to make up the losses they experienced during 2008–2009 almost a decade later. Further, nominal prices suggest a bottoming out of the market in 2009, but adjusting for inflation suggests prices decline a little until 2012, when they started to grow again.


With low inflation recently, the two price trends have tracked each other closely, and price changes that are widely reported can be observed as real, as well as nominal.


Do get in touch should you ever need any advice on the market or your home - I will be happy to help!


By Alex at Aboda, Jul 5 2018 09:16PM

Parents are set to aid over 316,000 house purchases this year, although at £5.7 billion the total value of their lending is set to be down 17% on 2017 according to new research by Legal and General and CEBR.


Over 70% of parents use cash savings, their average contribution set to be £18,000 this year. However, the Bank of Mum and Dad is feeling the squeeze, this is 12% lower than their average contribution in 2017.


While 59% of those under 35 receive financial support from family and friends, the state of the current housing market is seeing support offered across the age spectrum. Two in five purchases aged 35–44, and one in four aged 45–54 benefit from help.


Unsurprisingly the percentage of purchasers receiving help (41%) and the average contribution received (£30,600) is highest across London. However, even in northern regions where average prices are lower, the Bank of Mum and Dad can be expected to contribute a not insignificant £12,000.


By Alex at Aboda, May 23 2018 08:58PM

Since the beginning of 2013 there have been 2.9 million new jobs created.


At the same time, average house prices have increased by 34%, with the two regions currently seeing the strongest growth in job creation (East Midlands and West Midlands) being some of the top performers in rental and house price growth.


So, why does new jobs growth affect house price growth?


A new job can often involve relocation to a new area and create a 'have to move' situation.


This stimulates demand to buy/sell/rent/let a home, and supply and demand affects prices.


Simple really!


If you'd like to discuss the market, or your home - feel free to get in touch! I'll be happy to talk.


Alex


RSS Feed

Web feed