Thanks to the recent drop in interest rates for two-year and five-year fixed mortgage rates, it means that house prices in Reading have become more affordable for those who need loans to secure the property.
In addition to the Reading property prices become more affordable, there has been a drop in the unemployment rate in the area. All this means that people now have more access to properties and homeowners are enjoying a healthy boost in their property values. In fact, the rise in property values is about 2.3% greater compared to last year.
While there is nothing definite, there are some concerning issues for home buyers in 2018. It pays to be aware of potential problems that may creep into the economy and affect the ability to afford mortgages or property values.
Central London Housing Marketing: While the housing market in Reading has seen price increases by just over 67% since 2010, the Central London market has grown by over 89%. The effect on the Central London housing market will play a role in how Reading will be seen by home buyers. This is because the housing market in Central London seems to be operating on different principles compared to Reading and most of the UK. If the Central London housing market corrects itself and falls, that may have a debilitating effect on Reading and other communities.
Inflation: As the economy starts to heat up, one big fear is that inflation will rise which affects what people earn. While a small amount of inflation is expected and even healthy for the economy, if it rises too much or too quickly it may affect the ability to pay for mortgage premiums over time.
Brexit: No one knows what type of effect that Brexit will have on the economy in Reading, much less the UK in general. However, there is sure to be some rises and falls until things settle down. There will certainly be complications, but it’s more than just the day to day effects. It will be the long-term ramifications that will ultimately decide what effect Brexit has on the housing market.
Although there is good news for buyers when it comes to Reading property prices, there are also concerns that need to be considered before making the purchase. Although there are considerable uncertainties in the housing market, the prudent move does lean toward taking advantage of house prices in Reading. This means making the purchase if it falls within your budget to take advantage of lower interest rates.
For buyers, be sure that the houses for sale in Reading fit your needs, fall within your budget, and offer the potential for increasing property values. It is expected that over the next year, the prices of homes in Reading will be bumpy, but probably stay within 2% of their current prices. All things considered, the housing market in Reading is one that benefits both buyers and sellers which is good news for everyone.
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