2011 Predicted As Best Time to Buy a Home

2011 Predicted As Best Time to Buy a Home – Although many are at the ready to paint a very gloomy picture for the current market in house sales; a study by the BSA (Building Societies Association) has revealed that 2011 could be the best time to buy your new home.
Estate Agents have got plenty of properties in their windows ready to sell, the main problem has been for potential buyers to secure affordable mortgages from lenders with first time buyers not managing to set foot on the first rung of the property ladder.
This, teamed with continued concerns over redundancies in the job market has seemingly deterred consumers from browsing the overabundance of homes for sale. However, despite most reports suggesting that buyers have lost interest in making a purchase, the BSA’s survey has revealed that 59% of over 2,000 people asked in its property tracker poll, would buy immediately or certainly within the next year, should they be given adequate funding. A further 11% were said to have answered that they would like to make a purchase within the next 2 years.
Understandably, less of its questioners answered positively when asked if they thought that now was a good time to buy. Over a third also thought that property within their local area were too expensive in the current market, with many of those citing that they thought local properties were overvalued by 10% or more. An interesting statistic that comes hot-on-the-heels of vendors being asked to make yet another reduction on asking prices. In balance, 36% of homeowners thought properties were reasonably priced, while 21% perceived their undervalue.
A third of the people questioned in BSA’s survey were optimistic going into next year, about the chances that sales prices would increase, while 36% said they would fall, with a further 15% reckoning on a freeze with the current pricing.
BSA’s results have come under fire, with many experts saying that asking someone if they would buy something if they had the money, was not a fair assessment as to whether next year will see an increase in house sales. It was also criticised for not gauging peoples actual conviction in the current strength of the property market as the initial question is based on a ‘fantasy scenario’.
RICS (The Royal Institution of Chartered Surveyors) survey provided a much darker premise, showing the market’s decline, which was backed up by the department for communities and local government that announced house prices had fallen another 0.1% in October on top of September’s 0.8% decrease. While the Council of Mortgage Lenders warned that lending may decrease by A?3bn in 2011, as it’s predicted to reach its lowest level in over 30 years.
As BSA spokesman Paul Broadhead confirmed, many people were still too worried about keeping jobs, raising deposits and securing finance for the housing market to make a sudden upturn, and it is these elements that may lead to a further fall in prices.