The strongest sellers’ market in a decade was one of the many results of the covid-19 pandemic. Successive national lockdowns caused a “race for space”, fuelled by buyers looking for bigger homes with gardens. Country house prices reached record highs.
Written by Lisa Proffitt | 27th June 2022
Is it the right time to sell? Property market update June 2022
If you’re studying the property market and considering whether now is a good time to sell, here’s what you need to know 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.
- 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.
- 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.
- 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.
- 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.
- 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%.
- As the frenetic market cools slightly, careful pricing will be key to attracting the right number of viewings for the most successful sale. Having honest and realistic conversations with your estate agent when it comes to your guide price will be critical. Getting the price right when you’re new to market is far better than making changes further down the line.
- 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.
- 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 Michael Graham and we’ll help you to decide what’s right for you.
If you are considering selling now in order to take advantage of the favourable market conditions, call your local Michael Graham office now or book a free home valuation. We would be delighted to help.