Recent figures may have given some indication that property prices could be about to start rising again, but does that mean first time buyers should be rushing to buy now? In relative terms values are still high, with PricedOut.org.uk spokesperson Katy John noting that a typical home costs five times the average salary.
She also observed that the range of first time buyer mortgages currently available is limited, but suggested that it is high prices rather than the need for large deposits that are keeping people out of the market.
Ms John's advice to those hoping to get on to the ladder is to continue saving for now, as she expects prices to actually drop further later in the year. But those who do want to compare mortgages and make a purchase now were urged to take advantage of the fact that values could continue to fall by haggling.
Statistics released by the Royal Institution of Chartered Surveyors showed that first time buyer mortgages could well be in demand, as new buyer enquiries continued to rise last month. Indeed, May was the seventh consecutive month in which this figure increased. Halifax, meanwhile, revealed that house prices were 16.3 per cent below a year earlier, but did actually rise by 2.6 per cent over the course of the month.
But Ms John urged caution, suggesting that these figures are likely to be a "temporary blip", an opinion echoed by Firstrung chief executive Paul Holmes. Comparing house prices to average wages, he suggested that the market is in fact halfway through a correction from the peaks seen in 2007.
Despite this, the Building Societies Association (BSA) has identified "cautious optimism" among consumers. A survey by the body revealed that the average respondent expects prices to rise by 1.4 per cent over the next year, which could mean it is time for potential buyers to look for the cheapest mortgages.
According to the study, 59 per cent of people agree or tend to agree that now is a good time to be in the market, a rise of five percentage points compared to March - the last time it was carried out.
Paul Broadhead, head of mortgage policy at the BSA, explained that "a number of encouraging signs" have contributed to the confidence boost, adding: "People clearly recognise that with both property prices and mortgage rates having fallen, there are potential bargains to be found, meaning that now is a good time to buy."
So while those looking for first time buyer mortgages may prefer to continue saving towards a deposit, it seems that many consumers think acting fast is the way to go
Article Source: http://www.articlesbase.com/mortgage-articles/the-mortgage-market-waiting-game-977484.html
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