
Interest Rate Update: What Buyers and Sellers in ๐ Wakefield & Pontefract Need to Know ๐ก
Property experts say that many people have put their moving plans on hold until interest rates drop*. Is this the right or wrong thing to do โ๏ธ ๐
Letโs take a look**.
First, some context ๐๐ผ
In its battle to beat inflation, the Bank of England (BoE) has held rates at 5.25% since August last year.
While some predict the BoE may cut rates when it meets in August, the change, if any, is expected to be small.
So, yes, we could see a rate cut this year, but it will be modest.
The BoE wonโt want to cut rates too quickly in case inflation surges like it did last year.
Conclusion: While rates may drop a little bit, if youโre holding out for the ultra-low deals we saw a few years ago, you could be waiting a long time.
Other issues to consider
Here are some other issues to weigh up when deciding on your next move.
๐๐ผ Currently, properties on the market are competitively priced. There are some very good deals to be had.
๐๐ผ If many buyers enter the market at the same time later in the year, there will be more demand and increased competition between buyers.
๐๐ผ When interest rates drop, and people can borrow more, property prices tend to rise.
๐๐ผ Delaying a move can have a financial cost. If your aim is to move closer to work or family, youโll spend more on commuting or childcare in the interim.
๐๐ผ Property transactions can take longer than you expect to complete. If itโs your ambition to live in the catchment of an outstanding school, itโs good to have certainty.
๐๐ผ Thereโs an emotional cost to putting your life on hold. Itโs one thing to delay a move for a few months, but if youโre keen to downsize or upsize, waiting means youโre left in limbo.
So, is it wiser to wait or more astute to act? Ultimately, only you can decide whatโs right for you.
But when you feel itโs time for a change, weโre here to help.
For more insights about the local property market, contact us here at RedRoots today.
* Source: Knight Frank
** This article is an assessment based on the data and research available at the time of writing.