The perception of optimism
As the barometer slowly swings back to the positive side of the spectrum in the housing market, most observers may think that it is only a matter of time before it reverses yet again. That may be so but for the moment the positive aura has been reinforced by a new survey.
According to the Building Societies Association (BSA), approximately 58% of people think it is currently a good time to purchase a home while, on the other hand, only 19% think it is a bad time.
Another question in the survey revealed that consumers now expect house prices to rise by an average of 1.6% during the coming 12 months, with 61% of people expecting a price rise and only 15% anticipating a further fall, down from 27% who expected the correction to continue in June.
The BSA says that the recent run of positive data on the property market, which has seen most of the major house price indexes report price rises, is likely to have boosted people’s confidence.
The latest findings are significant change from when the same research was carried out in September last year, when only 34% of those questioned thought it was a good time to buy a house, with people predicting that prices would fall by an average of 8.4% during the coming year.
There is also a perception that the availability of mortgages has improved, with 49% of people still citing this as a barrier to home ownership, down from 57% last year.
A lack of job security continues to be the biggest factor stopping people from buying a house at 58%, followed by raising a big enough deposit at 52%, while 39% of people are worried about being able to afford their monthly mortgage repayments.
It is becoming clear that home buyers are increasingly viewing the property market positively as confidence increases in the market. The majority of respondents believe now is a good time to buy.
With mortgage availability perceived to be increasing, prospective buyers are more confident of securing funding to purchase a property.
