2022 was a year of highs and lows.
The year started at an absolute high with property selling at breakneck speed and at sky high prices on the back of the covid wave, with an average price increase of 5.6% over 2021.
However, this unprecedented demand caused an imbalance of supply and demand and, whilst the market was exceptional for those looking to sell, it did cause issues for many who struggled to secure an onward purchase.
Over the summer the market calmed a little and as demand dropped it led to a less furious marketplace which was more in keeping with pre-pandemic activity. Later in the year several factors, including increased interest and mortgage rates, started to impact on the housing market.
Some buyers reported that their mortgage offers were withdrawn as late as twenty-four hours before proposed exchange, whilst others found that lenders raised their rates so far they became unaffordable and so had to pull out of deals.
Early indications for 2023
Rightmove reports that ‘In December 2022 views of homes for sale on Rightmove were up 11% when compared to the same period in 2021, suggesting that much of the population are considering a move in 2023. Whilst we don’t expect prices to rise again, we are hopeful that the market will not drop dramatically further with the national prediction being an average decrease of 2%.’
So far 2023 appears be a period of rebalance. With the frenetic covid marketplace slowing, now is the time for equilibrium to be restored, prices to level and borrowing to calm. Whilst this may seem a boring approach to the marketplace, the rises of 2022 are unsustainable, and the balance needs to be redressed to allow the property market to stabilise.
Annabel Fearnall
Partner
a.fearnall@barbers-rural.co.uk