However, looking at the history of the market and precedents that have been set in the past, plus existing data and research, might just offer a few clues.
For those seeking the elusive needle in the haystack, the team at onlinemortgageadvisor have compiled three predictions about what’s to come in the housing market over the next five years.
The housing market overheats
In economics, overheating occurs when a booming market’s growth begins to outpace the capabilities of the consumers. With the cost-of-living crisis gripping the nation, in tandem with ever-rising inflation, the current housing market boom could be set to overheat in the next five years. In fact, it could happen much sooner than five years from now, due to the extraordinary circumstances bestowed upon us by the ongoing COVID-19 global pandemic.
While it might sound like a daunting reality – the housing market overheating at a time when first-time buyers are already finding it difficult to set foot on the property ladder – a reset in prices and an influx of stability could actually create a safe haven.
Swapping bright city lights for bright yellow wellies
Living in a big city has been highly romanticised for generations, but consumer attitudes could be set for a major change over the next five years. There’s no shying away from the fact that the past two years have prompted many to reconsider their dreams, goals and priorities, and it’s surely no coincidence that the allure of buying a ‘fixer-up’ property in a more rural area to redesign in your own image has spiked in popularity. It wouldn’t be a shock to see more and more people swap the bright city lights for bright yellow wellies.
The race for space comes to an end
Throughout the pandemic, buyers have increasingly looked to upsize their homes – so much so that it has a name: the race for space. However, as people’s work and personal lives return to a normal routine as the pandemic falls further and further into the rear-view mirror, the thirst for a property as expansive as the ocean itself could subside. Due to not being able to go out, people have poured more and more money into their homes. However, restrictions have subsided, and buyers could return to pre-pandemic habits.
Pete Mugleston, MD and Mortgage Expert at www.onlinemortgageadvisor.co.uk, commented: “The housing market is incredibly difficult to predict. Many experts predicted that prices would tank at the start of the pandemic, yet they’ve still continued to rise. Despite that, looking at the history of the market and precedents that have been set plus existing data and research, there’s still room to make a few predictions about what might be set to come over the next five years.”
