2021 was the busiest year for the housing market since 2007.
Despite economic headwinds, buyer demand remains high as the underlying drivers of more space and a change of lifestyle remain, supported by low-interest rates. So, what’s the Housing Market Update February 2022?
Rightmove and Zoopla report that there has been no let-up in buyer demand at the start of 2022.
New year demand is up 15% year-on-year and Zoopla has seen demand in the opening weeks of 2022 at 49% higher than the average witnessed between 2018-2021.
A lack of available property to purchase means that buyer competition is nearly double that of a year ago (Rightmove). Best and final offers for property in sought-after locations are commonplace, and many are selling above asking price.
Annual property price growth in the year to January is 11%, the strongest start to a year since 2005.
There are signs of stock levels improving in the coming weeks;
Rightmove report the number of home valuations in the first working week of 2022 was up 44% on the same time in 2021. At present, an estimated 40% of buyers inquiring about a home have not yet put theirs on the market.
So ‘power buyers’ (those who have cash to buy or have already sold subject to contract), are in the best position to secure their dream property.
The latest data from Nationwide indicates:
Annual property price growth in the year to January is 11.2%, the strongest start to a year since 2005.
The base rate is still extremely low by historical standards and is unlikely to have a significant impact on the market in the short term.
The Bank of England raised the base rate to 0.5% in early February, but this is unlikely to have a significant impact on the market in the short term.
Most homeowners are on fixed-rate deals and even at 0.5%, the base rate is extremely low by historical standards. With energy costs a significant element of current prices rises, this may well turn the spotlight onto more energy-efficient homes. Particularly for those seeking to upgrade or take their first steps onto the property ladder.
So with Rightmove analysis confirming that March is the strongest month to sell and price growth in January being the strongest in 21 years, now really is a good time to sell your home.
Get in touch by giving us a call to book your valuation on 01257 451 673. We look forward to speaking with you.