Are you thinking of buying a house this year? Was it your New Year resolution to buy a house in 2018? Many people are thinking about buying a house this year, but buying a house is a big investment. 2017 was not a good year, investment-wise. So it is sensible to do your research before you set up to make a lump sum investment. It is always better to know what is in store for your investment; so here are the 3 most important things you need to know about the housing market in 2018.
1. Inventory is the king of the housing market
Research and the basic demand-supply theory of Economics indicate that when there are not enough homes for sale the price of the available homes goes up. But the predictions are that more homes are going to be available in the property market this year. According to the Construction Products Association and our estate agents in London, around 184000 new houses more constructed and completed in 2017. This probably means that these houses are going to be up for sale this year. As the number of houses for sale increase, the asking price per house will go down. Even though the prices of housing are falling, the overall cost of buying a house in London is so high that the falling prices do not make too much of a difference.
2. You need to act smart, quickly
When you have finally identified the right property, it is time to act quickly. It is not just the inventory in the housing marketing that is going up; even the number of buyers are increasing. More and more millennials are looking to buy their own houses as opposed to paying exorbitant rents. However, research shows that millennials prefer to buy houses in suburban areas instead of central locations. So if you are looking for houses in suburban areas, then it is best you do some research beforehand and act fast. If you are looking to buy property in central regions (which will cost you quite a bit and some more), then you might get a chance to take our own sweet time.
3. Regional cities are currently booming
As mentioned earlier, youngsters and millennials, as well as people who are looking to climb up the ladder, are starting to buy their own houses in suburban and regional areas. Even though the prices of housing in these regional cities are much lower when compared to central regions, there is a gap between demand and supply. As the demand for housing in regional cities is increasing, the prices of these properties are also increasing. Many buyers are waiting for political stability, but while that happens some prime property might just get away from them. First-time buyers are currently on the rise, as some of the taxes and government changes are bringing about a balance in the housing market.
Most experts are expecting a small rise in price in housing, but there are not predicting an increase in price in the central regions of London. So if you are genuinely interested in buying a house in 2018, make sure you have a really good agent. Do not get an agent you just says what you want to hear, get an agent who is well informed and can help you make the right investment. If you have your heart set on buying a house this year (despite the lack of supply), don’t just look at ready to move in properties. Look at properties with potential even if they require a little bit of fixing because eventually, the total investment might reduce.