Are property prices going down? This is the question everyone is asking right now. After such a busy year which has been driven by the Stamp duty holiday, low mortgage rates. Plus the so called “race for space” as people reassess their home requirements following effects of the Covid-19 pandemic, multiple lockdowns and home working. Properties are being snapped up by eager buyers, sometimes within days of coming onto the market. Demand is so high, that house prices have been driven upwards by an average of 6.9% so far this year., according to property portal Zoopla, 2021 has been the busiest market since 2007.
With so much activity, and so many people taking advantage of the stamp duty holiday, surely demand will cool in 2022 and with that, so will property prices?
The housing market in 2022
Zoopla’s recent report into the housing market has identified that currently 22% of people want to move. Compare this to a normal market which has around 5% of people wanting to move and you will get an idea of why buyer demand is so high, and why house prices are continuing to rise.
As people continue to review their options. The pandemic-induced search for space will continue to be a driving force within the marketplace. The ability to work from home has opened up opportunities for many office workers who are now able to move further afield to improve their work life balance.
Low mortgage rates have enticed many first time buyers to the market, desperate to get their feet on the first rung of the property ladder.
Additionally, many home owners have built up significant equity in their homes over the past 18 months and they want to cash in.
The current shortage of stock is also driving prices up, this looks set to continue well into 2022.
The downside of this is that the cost of living is rising rapidly. Mortgage rates are expected to increase next year, along with taxation. This will affect affordability for many. This in turn will see demand start to slow and house prices cool a little.
However, predictions are, that due to the factors above, house price growth is expected to end 2022 at three 3%.
Swales’ housing market
Properties in Swale have an average house price of £288,874. This is predicted to rise to £297,540 based on an increase of 3%. However, due to it’s close proximity to London and being surrounded by both coast and countryside. Swale has seen house prices increase beyond the national average in recent years. Based on this, the average house price in Swale will be past the £300K mark by the end of 2022.