Should you Buy your First Home in 2023
Buying your first home is a huge decision, and it’s a very expensive decision too. If you are considering whether you should buy your first home in 2023, then this is the blog post for you. We share some of the key things that first time buyers in Peterborough need to consider before buying a home in 2023.
Falling House Prices?
After years of rising house prices, experts have predicted that house prices will fall in 2023. This is due to the cost-of-living crisis as well as the impact of high mortgage rates on the housing market.
Experts haven’t been able to agree on how much house prices may fall this year. However, Savills have predicted a fall in house prices of around 10%. Meanwhile, Rightmove has seen a fall in values of home by just 2%. Data from Halifax shows that prices of homes fell by 2.3% in November last year. This was the largest drop seen in 14 years.
Higher Mortgage Rates Damaging Affordability?
While cheaper house prices may sound like a good thing for first time buyers in Peterborough, the high mortgage rates have blighted the market. Building Societies Association (BSA) have found that the mortgage affordability is possibly the biggest barrier when it comes to people buying homes. Rates may fall later in 2023, but significant drops are thought to be unlikely.
Bigger Deposits?
While it is possible for a first-time buyer in Peterborough in 2023 to get a mortgage with a 5% deposit, those buyers that can put down a bigger deposit will find it easier to get on the property ladder. Those people buying their first home in 2023 with a larger deposit, will be seen as less risky to mortgage lenders. This means that the mortgage lenders will offer lower interest rates and better deals on your borrowing.
Better Negotiations in a Slower Market?
Due to the current cost-of-living crisis and unease around the buying a new home, demand for properties is lower in 2023 than in recent years. UK Finance has predicted that sales will decrease by a 5th in 2023, when compared to 2022.
However, this could be seen as good news for those buying their first home in 2023. With fewer people viewing properties, it means that buyers could have the upper hand when it comes to getting the best deal.
Overview: Should You Buy Your First Home in 2023?
Could 2023 be the year for you to buy your first home? Why not call our team. We can put you in touch with our mortgage advisors who will offer you free advice and guidance to help you get the best home and mortgage for your circumstances. They will complete an affordability check with you and then our estate agents can set up some house viewings for you.
