Moving into 2022, the housing market will be influenced by both positive and negative factors.
On the positive side, the pandemic- induced search for space has further to run.
The ability to work from home has expanded the horizons for many office workers who now feel able to look further afield.
Zoopla's research shows that 22% of people currently want to move, significantly higher than the usual 5% in a normal market.
The high levels of equity homeowners have built up during the past 18 months and the shortage of homes on the market is expected to support house price growth well into 2022.
But on the downside, the rising cost of living, combined with an expectation that mortgage rates and taxes will rise next year, will impact affordability.
House price growth is expected to end 2022 at 3%, with growth likely to be strongest in the East Midlands and North West and weakest in London.
Transaction levels are expected to fall by 20% to 1.2 million, in line with the long-running average but still comparatively high compared with the past decade.
WHAT COULD THIS MEAN FOR YOU?
First-Time Buyers
The market remains fast-moving and is not expected to start slowing down until well into 2022.
As a result, you'll need to be prepared to move quickly if you see somewhere you like. It's a good idea to have a mortgage offer agreed in principle before you start house hunting.
With many potential buyer looking for more space, particularly a garden, you may find you have more choice and less pressure if you opt for a flat.
Home-Movers
If you are thinking of moving, it remains a great time to put your home on the market as demand from potential buyers is continuing to outstrip supply.
Unfortunately, these same dynamics may make it challenging to find your next home.
Do as much research as you can before listing your current property and talk to local estate agent to find out how fast the market is moving.
