An Honest Assessment of the Current Housing Market
28th July 2022
28th July 2022
If you are planning on buying or selling a house, the current market could seem quite confusing. In fact, trying to predict how the housing market is going to react to current affairs is almost a full-time job in itself!
But to help give you a steer, our Devon estate agents have given an honest assessment of the current housing market to help clear up any confusion you may have.
Back in May 2020, the Bank of England predicted that the pandemic would negatively affect housing prices, noting a potential 16% fall in property prices. However, the market has remained defiant and has thrived rather than survived.
Compared to the last time that the market was seen as ‘normal’, back in 2019, buyer enquiries are up by 31%, with mortgage approvals and sales are up by 12% and 11% respectively. The South West has seen a particularly impressive increase in house prices, increasing by 10.9% since 2019. Across the UK, the average house price is reported to be nearly £47,000 more than in March 2020, further highlighting how active the market currently is. House prices
On average, properties are selling in just 31 days, which is the quickest time ever recorded. All of this is showing that interest is still very much present, but there is one slight drawback.
While buyer demand is at an all-time high, stock levels are currently down by 55%, according to data from Rightmove, HMRC and the Bank of England. At one point in recent months, buyers were outweighing sellers by a massive 19 to one.
While there is an increased demand for properties to buy, it does put sellers in a strengthened position, as having a much-desired commodity means sellers are able to hold out for the best possible offer.
If you are considering selling your home, get in touch to book a free valuation appointment.
There are two schools of thought when it comes to selling your home in the current climate:
· For yes - the current availability of competitive mortgage deals makes it enticing to move home. While they are not at their lowest levels, they still make borrowing fairly cheap which could be a deciding factor. The Bank of England has also increased the base rate several times in recent meetings, and indicators state they will action further rises in 2022, meaning borrowing could become more expensive in the coming month, which will limit the amount you are able to secure for a house purchase.
· For no – with house prices at their currently inflated levels, it could lead to them trending downwards over the coming months. If you are moving to a new area or buying a second property, you could potentially save money if you decided to wait. However, if you need to sell to buy, it could benefit you to capitalise on the current price boom.
The million-pound question that seems to be on everyone’s lips is whether the market is going to crash or not. With the cost of living rising, the ongoing Covid recovery and various other global issues, many are fearing a dramatic crash.
But the good news is, if and when the market does start to slow, these changes are likely to be gradual, unlike the global financial crash in 2008. Positive price growth is still expected to occur throughout the rest of 2022, and a strong desire to move home remains. The decision to move home ultimately lies with the individual, but it’s not all doom and gloom!If you are looking to sell your property or are interested in getting a valuation for your house, please do not hesitate to get in touch with us.