Welcome to the June 2022 property market comment. (Scroll down to watch Richards video) The…
As we exit what has been an extraordinarily upbeat winter in terms of the property market, we enter a slightly confusing Spring market. Spring has historically been the most active season for home-movers, because it’s a time of growth, change and renewal. We British come out of hibernation and look to the future, hoping to take advantage of the longer days and better weather, and if we can move before the end of the school year in September, then now is a good time to start the ball rolling.
This year, we had a very mild winter which kept activity high, hot on the heels of a pandemic that prompted many of us to reconsider our lifestyle choices. Many of those who might have considered selling this spring brought their sales forward, hence the intense activity of Christmas.
Over the last couple of months we have been worried about stock levels, as demand continued to outstrip supply and it is this imbalance that has maintained exceptional house price growth over the winter (over 11% annual increases in house prices last month according to Nationwide).
However, as a nation, we now have some very real issues to face, not least a tragic war on our doorstep. It seems clear that this is likely to have a substantial effect, at the very least, on fuel prices, which have already risen to record levels. Inflation is higher than it should be, interest rates have risen slightly and are forecast to rise further during this year. Fortunately, unemployment remains lower than expected and the general confidence level remains high.
That runaway market we have experienced is now finally being brought under control and the feeling is that we can look forward to a more stable market, perhaps with a healthy 3% or 4% house price growth for the rest of the year. Importantly, according to Zoopla, the number of new listings coming to market is up 5% on the five-year average which is fabulous news for those potential sellers who have sat on the fence, thinking they would have nothing to move to. If that’s you, well your wait is over – your timing could be perfect! Sell now and you should have plenty of choice as that supply/demand imbalance shifts in your favour during the course of the spring. You might even look back one day and realise that you sold at the top of the market, who knows!
In the meantime, if you’d like any advice about how to take maximum advantage of these shifts in the market, then please feel to call us today on 01225 707 342 for some straight-talking good advice. You might be pleasantly surprised!