The media is awash with doom and gloom stories about the current state of the property market: slower growth, slower sales and impending rate rises on mortgage loans, but is this rooted in reality or more of a fiction?
There's no doubt that house price growth has slowed. Great you might say - let's hope north Norfolk becomes more affordable, but let's say something clearly now - after 7 to 8% rises in 2016, our Company Director, Julia Gooch, in an article for the Home Owners' Alliance, predicted more modest increases this year and so far, with 7 months of 2017 gone, she's spot on.
Nationally, house price growth was pegged at 2% by the portals, Julia, as an expert on property around north Norfolk, knew that this area has its own price micro-climate and went for 5%.
The problems Julia highlighted back then with her crystal ball have not disappeared.
"Housing stocks remains in low supply and high demand.
Mortgage affordability is great still but first time buyers struggle to get on the property ladder here (and elsewhere) because of required deposits."
Yesterday, the Telegraph reported a surge in mortgage switches to longer fixes as there's rumours that interest rates in post-Brexit Britain could rise.
But will they?
Or will competition amongst lenders, coupled with stringent lending criteria, keep interest rates at these historic lows?
We think interest rates will remain low for quite a few years.
Because house price growth has slowed.
You see, when property prices rapidly increase, the finger is pointed not at a strong economy, but at interest rates.
To give a broad example, that mortgage of £200,000 over 25 years may cost £800 per month on capital and interest repayment. If your personal circumstances change and you can afford a mortgage of £1200 per month, for example, you and others could be chasing homes in that price bracket and leaving the Bank of England with a fiscal dilemma.
Let house prices grow or rein them in by making mortgages less affordable.
We hope that makes sense?
It's a simplistic assertion, we agree, when the reality is more complicated - but it holds water.
Are mortgage rates about to go up?
Our answer is no.
If you need any more information about any aspects of property, please contact one of our expert team at Pure North Norfolk - Julia may even let you look at that crystal ball.