Tim Waring takes a look at the housing market and what happens next

Indeed, with inflation falling faster than many experts expected, this may also convince the Bank to consider ending its aggressive campaign to tame prices with further interest rate rises.

Market sentiment is far from being the sole domain of the residential property market. However, it is the economic sector that generates the most interest, opinion and aspiration.

No one wants to think that they could be losing money. By contrast, many were quick to jump on the bandwagon over the last 12-18 months when they thought they could make money quickly.

In my opinion the market is at a crossroads. Do you take the safe low road or even just park up and see if/when someone changes the signage? Or do you take the more adventurous highroad by owning a property that is fit for your purpose?

I liken it to the wide range of vehicles my partner has on the forecourt of her car sales business in Malton. Some are small and economical, others larger and less so.

Some are modest front wheel drive run-arounds, with others four wheel drive to go off-road across the North Yorkshire countryside.

Some of her sales are to discretionary buyers who fortunately have the money to buy outright and other purchasers require finance. Either way her buyers are in the market and of late increasingly confident.

Houses might be somewhat more expensive but I perceive the same confidence is now returning to the housing market. Or to quote a more cynical

friend, confidence is no longer draining away as it did in the latter part of last year.

Whilst events on a macro basis influence general market sentiment, what should you do?

Well, if you buy and sell in the same market, the big question is whether you can afford the differential through a mortgage if going up the ladder or realise enough equity if moving down.

The problem in the short term is too many people are parked up at my crossroads not sure which route to follow, hence the shortage of property for sale with Spring just around the corner.

I fear some have forgotten the property market operates on a seasonal basis and that the market in the last couple of years is not the norm.

The same could be said for interest rates which are historically low. So, if you remain at the crossroads too long, will you get stuck in the traffic going up the hill?

*Tim Waring specialises in prime residential at GSC Grays, tel: 01423 590500.