We’re in constant contact with agents, vendors, property experts and journalists and they are all of the same opinion…..no one really knows what the future holds when it comes to the property market. Most are optimistic and predicting a correction in the market rather than anything dramatic.
It’s certainly far busier than it was pre-pandemic and according to a recent survey by Nationwide, currently a massive 38% of us are either thinking about moving or are in the process of moving house.
Supply isn’t keeping up with demand with stock levels remaining relatively low – Zoopla reports that the level of available properties is 37% lower than normal. Those available properties are selling quickly with more than half achieving the guide price or more. However, the number of properties being put on the market is beginning to increase with the number of new listings in the 4 weeks to 22 May being 7% higher than the five-year average.
One in four are trading up to a larger property with the exception being the 55+ age group, of which nearly 40% are looking to downsize. The demand for outside space is less of a concern compared to when we first came out of the initial lockdown but buyers are still looking for space in general, including a study or office.
It is uncertain how the market will perform for the rest of the year. Consumer confidence has dipped due to the increasing economic concerns with fuel, food and energy prices rising. The International Monetary Fund have downgraded their forecast for global economic growth from 4.4% in January to 3.6% in April.
Many agents are suggesting pricing may deflate, but slowly – whereas many sales have been agreed for way over the guide price in the last few months, agents are now seeing these offers decrease slightly. The Bank of England has increased the base rate four times since December 2021 and if rates increase any further its likely to have an impact on the market if mortgage repayments increase. As usual, pricing is regional with the highest still being in London, although price growth there has been the lowest. Wales is growing faster than any other area or region in the UK.
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