Is it the right time to sell? Property market update June 2022
The covid-19 pandemic single-handedly created the strongest sellers’ market in the UK in a decade. Successive national lockdowns caused a “race for space”, and the prices of bigger homes with gardens reached record highs. If you’re weighing up the pros and cons of selling your home now, here’s what you need to know about the property market as we approach the middle of 2022:
The 8th June Halifax House Price Index shows that house prices in May 2022 were 10.5% higher than in May 2021.
2. The average price of a property coming to market has hit a new high of £368,614, the fifth consecutive record of the year according to the latest Rightmove data.
3. More than 500,000 homes are currently sold subject to contract. This figure is 44% higher than in 2019, and 39% higher than the pre-pandemic five-year average.
4. The number of properties coming on to the market is up by 7% compared to this time in 2021. After a chronic shortage of properties available for sale last year, there is now a better balance between supply and demand. One reason for this is that vendors are sensing that the market may be at its peak, so are coming to the market and taking offers.
5. Despite five consecutive interest rate rises and the increasing cost of living, buyer demand for each available property remains very strong, more than double (+113%) the pre-pandemic five-year May average.
6. The pace of growth is expected to slow in the autumn, bringing the annual rate of price growth down from the current 9.7% to nearer 5%.
7. As the frenetic market cools slightly, setting the right price will be critical for attracting the right number of viewings for the most successful sale. Getting the price right when you’re new to market is far better than making changes further down the line.
8. December may feel a long way off, but homeowners looking to move this year will need to get their property on the market in the next few weeks. Conveyancing log-jams mean that it is currently taking on average 150 days to complete a house purchase after agreeing on a sale. That’s 50 days longer than at this time in 2019.
9. Selling at the peak of the market may also involve buying at the peak of the market. In that scenario, if you are buying a similar sized property the gains made on your top sold price risk being chipped away at by the higher price you then pay for your next property. One solution is that if you have the funds to rent, you could delay your next property purchase until the autumn months when prices may be beginning to cool off. Give us a call here at Mustard and we can help you to decide what’s right for you.