Housing Costs Real Estate Agent

Nick Millican: Mortgages Prices Are Stopping Buyers In London

Property prices are going down, and wages are going up in London; however, people are hesitant about buying new homes. Investment manager Nick Millican, a real estate expert, explains the high-interest rates are stopping potential buyers. 

 

Mortgage payments are still a hardship for most families, especially those with homes in southern London. Nick Milican adds that it is expensive to live there, and a family needs to make over £75,000 to afford a middle-of-line house. 

 

All this points to the fact that the housing market is still bleak, states Millican. Home buyers who need a mortgage are hoping to wait out the mortgage rate hikes, hoping that mortgage prices will again begin to fall. This, Nick Millican recalls, is causing a ripple effect in the housing market.

Larger homes are not selling. Even some smaller homes spend longer than average time on the market. However, home buyers who have cash are still buying homes despite how expensive it is to live in London (Facebook). 

Cash buyers account for one in every three home purchases. Millican believes that once mortgage rates start to fall, there will be a demand for homes again. Though it may become a buyer’s market once again, it may not be a seller’s market. As Nick Millican assures, some price growth will be low.