To buy or not to buy…

… That is the question on many peoples minds at the moment. Though the figures suggest people are still not sufficiently confident in the economy to make this big decision.

RICS suggest housing activity fell in May in terms of new enquirers from potential buyers and this was also reflected in the seasonally adjusted mortgage approvals falling slightly month on month from April to May.

The housing market has been so suppressed these last few years that surely there is a huge pent up demand from people wanting to move, whether their first purchase or up the housing ladder.

The main thing that’s is stalling the market is the lack of first time buyers with sufficient deposit funds.

However the number of first time buyer mortgage products has increased from just 62 in June 2009 to 183 deals today, and I don’t think it will be long before this competition will cause a move to 95% LTV products and the housing market will be pick up again.

Once this demand starts and the lack of supply (from our increasing population and because the builders have been dormant for the last 3 years) will mean prices will rise.

So my thoughts are yes, time to buy. (Though even the best commentators do get it wrong – most of the time!)