In the last 12 months there has been an11% increase in house prices, but experts are now expecting the market to slow down. Which leaves many people asking that million dollar question… ‘When is it a good time to buy?’
After a year of soaring prices and fierce competition between buyers, house price growth is likely to slow in the coming months as the market settles down. And experts think we’re unlikely to see such rapid rises throughout the rest of 2022.
The property market soared last year as buyers rushed to take advantage of the government’s temporary cut to stamp duty. The stamp duty holiday meant buyers in England could save up to £15,000 in tax if they bought a home before the end of June, or up to £2,500 if they bought before the end of September. The number of property purchases naturally peaked around these deadlines, but the number of sales each month is now much closer to pre-pandemic levels. Data from HMRC shows around 112,000 transactions went through in January 2022 alone.
After the home-moving frenzy of last year, there’s now a mismatch between supply and demand of properties to buy. A recent survey found that nine-in-10 current house hunters have had their search affected by a lack of available properties to buy. The imbalance between supply and demand is reflected in Rightmove’s ‘time to sell’ data. The property portal estimates that homes took an average of 33 days to sell in March, down from 36 days in February 2022.
So, what will happen to house prices in the remainder of 2022?
Experts predict that house price growth will slow down as the year progresses. Zoopla have predicted overall price rises of 3.5% this year and 3% in 2023, whilst Halifax envisages a slower property market, with prices changing by 0%-2%.
This may leave you wondering if it’s possible to get a good mortgage deal? The answer is yes, and we can absolutely help you with this! Mortgage rates fell consistently in 2021, as lenders battled to offer the cheapest deals to buyers with big deposits – but that’s now changing. Rates have been rising off the back of three increases to the Bank of England base rate, but the good news is that there are still some attractive deals still available.
To summarise, If you’re thinking of getting onto the property ladder this year, it’s still a good time to do so! Low -deposit mortgages are also readily available, so you might find it a little easier to get a home loan than before.
If you are thinking of taking the plunge, we’re here to help! Get in touch today.