Credit: The Bolton News
Optimistic Outlook: Bolton Estate Agent Dispels Concerns Over Inflation Surge
Cardwells Estate Agents, a prominent name in Bolton’s real estate scene, offers a reassuring perspective in the midst of escalating inflation rates. Despite the North West experiencing the highest inflation rate in the country last year, Cardwells deems it “unlikely” for inflation to reach the previous peak of 13.5 percent this year. Recent data from the Bank of England reveals a decline in mortgage approvals for home buyers in December, hitting the lowest point since May 2020. Andrew Cardwell, representing Cardwells Estate in Bolton, anticipates a more positive trajectory for the property market in the coming year, dispelling fears of a gloomy outlook for homebuyers.
Assessing Market Dynamics: Impact of Supply, Demand, and Interest Rates
Amidst revelations that mortgage approvals for house purchase hit a nadir in December, falling from 46,200 to 35,600, Andrew Cardwell provides insights into the underlying dynamics shaping the property market. He attributes substantial growth in house prices up to November 2022 to the limited supply of properties failing to match the robust demand, fueled by lower interest rates during that period. The average UK house price in November, standing at £295,000, reflects a noteworthy £28,000 year-on-year increase. However, Cardwell emphasizes that the slight decrease from the previous month’s record high is no cause for alarm. He acknowledges the impact of political changes and financial market shifts, particularly interest rate increases, on the demand side of the property market, leading to a moderate realignment in national averages. Looking ahead, Cardwell remains confident in Bolton’s property market, grounded in robust fundamentals, though he suggests a shift from the double-digit annual price rises seen in the past year to a more moderate single-digit percentage growth in 2023.
