AND NOW FOR OUR 2022 CRYSTAL BALL!
11th December 2021
The property portal Rightmove predicts that the national average price of property coming to market will rise by 5% next year, as strong buyer demand and a historically low level of available property continue to push up prices in 2022.As always there will be sector and regional market variations. Currently the most competitive markets are in Scotland, the West Midlands, the South West and Yorkshire and the Humber, and Rightmove predicts these areas are likely to see price growth at a higher rate of upwards of 7% next year. Here at Seldons Estate Agents we cannot argue with this and strong buyer demand continues to prove that North Devon is a great place to live!
Rightmove’s price forecast is based on a house price predictive model that uses millions of supply, demand and pricing data points across the property market, along with insights from a panel of Rightmove experts.
Here at Seldons Estate Agents we have certainly enjoyed a hectic 18 months for the property market since the end of the first lockdown, with changed housing needs driven by the pandemic inspiring many moves, and the stamp duty holiday encouraging some movers to bring their plans forward. The net result as we approach the start of the 2022 market is the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand. This imbalance between supply and demand has resulted in buyer demand per available property being at near record highs, suggesting that the 2021 scenario will to continue into the New Year.
We are, however, expecting the pace of rises in 2022 to be slower than in 2021 due to increasingly stretched buyer affordability following this year’s rapid rises in average prices. Slowing in the pace of price rises and activity is likely to be more evident in the second half of the year as base rate rises (albeit remaining at historic lows) higher inflation, and higher taxes begin to weigh more heavily on buyer sentiment. Therefore, if sellers are too optimistic on their asking price in the first half of the year, they risk missing the most active part of the market.
This may favour some early-birds who have brought their moves forward whilst others may perhaps wait for greater certainty on their work life balance and the frequency of their work commute. Buyer demand is now currently up by 2% on the frenetic period this time last year, and up by 40% when compared with November 2019.
A predicted return to more ‘normal’ conditions will suit some owners who have been deterred by the hitherto hectic pace of the property market. This should see more properties come to market, especially when combined with the usual surge of speculative spring sellers who look to get on with their moving plans early in the year. Greater supply of properties coming to market should lead to a reduction in the proportion of multiple offers on properties due to greater buyer choice, and a lessening in the pace of upwards price pressure. Movers will still benefit from good mortgage availability and attractive rates even if base rates rise, and more choice of property coming to market and the slower pace of price rises compared to 2021 will encourage some who have held back so far to take action.
Contact SELDONS ESTATE AGENTS now on 01237 477997, for your FREE valuation and to get your home on the market!
