In the office the other day one of our colleagues remarked that they were dealing with a lot more first time buyers than usual. This got us thinking in the office whether this was true across the Ipswich property market in general.
Well looking at the stats, first of all we can see the number of properties bought since the summer by Ipswich first time buyers;
So from August there has been a steady increase in first time buyers across Ipswich the property market with 37 more purchases recorded in October that August. That’s an increase of 25.5% in that time period.
The average purchase price for an Ipswich first time buyer has actually decreased slightly over the course of the year;
Whilst holding a fairly consistent average price, it has dipped slightly from the start of year which reflects the overall minor decrease from the start of the year in the market in general.
We think the biggest factors for the increase and popularity of the first time buyer market in Ipswich is a combination of fantastic mortgage rates, our mortgage broker in the office reporting a rate of below 2% (21.11.19) and relatively low average house prices in comparison to other local areas. Mortgage rates have been consistently low now for 10 years, with more banks and building society’s fighting for everyone’s business and attracting customers with fantastically low rates – which is actually pretty consistent across the board. The average first time house price is also comparatively low, for example the average first time house purchase in Bury St. Edmunds is £225,716 and Colchester is £227,438. With the investment and improvement in amenities and services in Ipswich combined with the average Ipswich property price, and super mortgage rates we believe is the reason that Ipswich is becoming more and more an attractive proposition for first time buyers.
With more first time buyers in the area this can only be a good thing, first time buyers are the lifeblood of any property market, whether you’re looking to move up the ladder, downsize, or a landlord exiting the marketing of freeing up an investment, without first time buyers the property market is a much flatter place. What are your thoughts?