When should you buy a new home in 2022, according to estate agents?
In 2021, house prices soared to previously unheard-of heights, with sellers benefiting from one of the most lucrative markets in decades.
When, on the other hand, should prospective buyers act this year?
Every penny counts for home buyers, as rising household bills, tax increases, and interest rates spell another difficult year for would-be movers.
The Halifax House Price Index revealed today that property prices rose 9.8% in 2021, indicating a strong year for the market.
It’s the largest annual increase since 2004, when prices increased by 12.5%.
House prices increased by an average of £24,000 in cash terms, the largest year-on-year increase since 2007.
Historical low mortgage rates, the stamp duty holiday, behavioural changes, and a housing shortage all contributed to the price increase.
However, the fast-paced rise is already being slowed, with 2022 looking less promising.
Property experts predict that as the year progresses, the market will cool, giving buyers some much-needed relief.
However, predicting a specific period when buyers should strike is difficult – most experts advise deferring offers until later in the year.
First-time buyers should wait and see what happens in the market, according to Lewis Shaw, founder of Mansfield-based Shaw Financial Services.
“Prices aren’t going to collapse, but they are definitely going to come down in 2022,” he said, suggesting that some first-time buyers wait a few months to see what happens.
“Even if mortgage rates rise, they’ll still be ridiculously low, so I wouldn’t be too concerned.”
“The most important thing is to get in shape and speak with a broker so you’ll be ready to go when prices start to soften.”
“However, if you find the right house, strike while the iron is hot, as there is currently a severe shortage of properties for sale.”
Buyers should consider their personal circumstances over what happens in the market, according to Graham Taylor of mortgage broker Hudson Rose in Nailsworth and Cirencester.
“People should buy when they’re ready and committed to the purchase,” he advised.
“House price fluctuations are less important if you plan to stay in the property for a long time.”
If you want to buy and have the funds, go ahead and do it.”
He gave advice.
“News from the Brinkwire.”