Sun 12 Jun 2022
Ian Woodhouse-Smith, Lettings Manager
Now that we’re halfway through the year, it’s time to take a look at the state of the property market. Are house prices continuing to rise? Is demand still outstripping supply? With inflation and interest rates rising, how likely is a market crash during the latter half of the year?
Here’s a round-up of the property market in 2022 so far.
House prices continue to rise
In the first half of 2022, house prices have continued to rise. In March, average prices had risen by 10 per cent since the previous year. In April, they rose again by another 1.1% to £286,079 – an all-time high.
This means the average property is now worth £50,000 more than it was in 2020.
However, price increases have slowed down in April and May – a sign that the market itself could be beginning to slow.
What trends are shaping the market?
The ‘race for space’ market trend, catalysed by the Covid-19 lockdowns, is still prevalent in the 2022 property market. City residents are moving to more rural areas in search of more space – both inside and outside of their properties. Remote working allows commuters to move further away from their place of work, making rural towns with good transport links increasingly desirable.
Demand for properties still outweighs supply, fuelling fast sales, strong competition and inflated house prices.
What is predicted for the rest of the year?
The cost-of-living crisis is expected to have an impact on the market later in the year. Interest rates are on the rise, with multiple increases in the past six months. With inflation predicted to reach 10 per cent later in the year, it’s likely interest rates will continue to rise, further squeezing already-stretched household budgets.
This makes it likely that the increase in house prices will slow by the end of 2022.
Some are predicting a market crash by the end of the year. However, others are expecting houses to hold their value whilst demand decreases slightly. If you’re planning to sell your property this year, now is the time to put.
If you’re looking to buy or sell in the Alresford area in 2022, speak to the local property experts at Hellards.