Homebuyers' confidence is down
Consumer confidence is a funny, fragile thing. Sometimes it’s riding higher than Prince on a purple motorbike, the next it’s like a teenage girl in the Top Shop changing room worrying about the size of her thighs.
This time, homebuyers’ confidence has taken a blow – it’s dropped by 35% and is now at its lowest level for three years, thanks to fears about inflated prices and increased interest rates. That’s according to the Halifax quarterly Housing Market Confidence Tracker.
And it’s not surprising that the most tentative homebuyers are in London and the South East, while the ones with the most devil-may-care attitude are from Scotland and the North East.
Their survey found that there was a recent sharp rise in people who say that they can’t afford to buy because of prices going up. (from 20% last year to 35% this year).
However, people are still confident that they will manage to SELL their homes, even though they might not be able to afford their next one. A quarter of people surveyed said that this year was a good time to sell up and get out.
Craig McKinlay from the Halifax said:
‘Over the past two years consumer confidence has continued to grow, however it appears that we’ve reached a tipping point, with the equilibrium between buyers and sellers much more out of sync.’