Nick Millican: Is Shrinkflation Hitting The Housing Market?
Nick Millican: Is Shrinkflation Hitting The Housing Market?
As predicted, the start of 2024 is swinging upward, according to Nick Millican. Spring is seeing an increase in sales. The people responsible for this surge are the first-time home buyers.
Falling mortgage rates make it easier for buyers to transition from renters to homeowners. However, there is a catch, according to Nick Millican. The falling mortgages may make it easier for buyers to purchase a house, but at what cost?
First-time buyers are finding that they are buying smaller houses at a much higher rate, reveals Nick Millican. Those looking to grow their family may find it hard to find an affordable space. Also, the first-time buyers will find themselves entering a new group.
They will become part of the group stuck in their first homes because they do not have the money to purchase a larger dwelling. Nick Millican adds how first-time home buyers are digging a hole of debt, which they will find hard to climb out of.
Compared to two years ago, says Millican, first-time home buyers pay more monthly for their mortgage. Buyers today are paying £209 a month more. Their payments are more, but the overall space they can afford is smaller. Nick Millican believes that shrinkflation will continue to affect the housing market for some time.