With the global economy finding its feet again, there are suggestions being made that house prices are set to rise. The market is also showing that this is the case, with several markets, indicating an increase in what homes are set to sell for when snapped up.
Is it Just a Bubble?
There are concerns, however, that what we are witnessing is merely a bubble, and there is no reason for the rise in house prices to last. The fact that this could be a bubble means that the rise in house prices will not be something that endures for a long time, and will most likely cause house prices to crash back down to their old figures in the coming months.
Hasty Decisions?
It is because of this that homeowners are being warned not to make any hasty decisions in relation to the sale of their house, or the purchase of a new house.
Regardless, some homeowners are finding themselves making a decision in spite of what the economy is showing as they’ve already put of their buying decisions on hold for a while now, thanks to the economy and the changes it has experienced. Whether you consult the estate agencies in Mayfair, or the estate agencies in Glasgow, you’ll find that there has been a marked increase in the number of homes going up for sale.
A Reflection of the Global Economy
In any case, the domestic home market is reflecting what is happening within the economy as a whole. Despite the fact that things have not been restored to their original condition, many homeowners are in fact feeling more confident about the current state of affairs, and feel as though there is going to be a change in the right direction.
However, thanks to slower growth rates, there seems to be less volatility in the market, making it a better situation for those who are attempting to take out mortgages, and buy a home.
What About Home Rentals?
Nevertheless, those who are in search of a mortgage might find it difficult as the market for homes is showing that it is harder than ever, for first time buyers to get on the housing ladder. When the rising house prices are taken into account alongside job insecurity, it is clear as to why more and more people are turning to home renting as an alternative. The act of renting homes provides individuals with a way in which they can protect themselves financially, but also to gain access to properties that would have been difficult to mortgage.
Of course, the rental market is not always the best of things for those who eventually want to buy a house. After all, there is no opportunity for those who are renting, to build up any equity in the property they inhabit.
What Will Happen Next?
Despite that, however, there are hopes that as the world economy begins to see a resurgence, that those looking to buy a home will have jobs of which have more security and better compensation. Eventually, as the economy catches up with the housing market, first time homeowners will hopefully no longer have to turn to rental properties, and can in fact buy housing instead.
