Rightmove today said that although the frantic property market due to pandemic will be less volatile and returns to “closer to normal”, house prices can still rise by 5% in 2022.
The typical property asking price dipped in December, down 0.7 per cent, or £2,234, according to the property listings portal giant.
The typical home coming fresh to market was listed for £340,167, compared to £342,401 the previous month, Rightmove said.
Rightmove figures reveal that the South West saw the greatest monthly drop in property asking prices, but the highest annual increase.
Minor dip: The asking price of the typical UK home in December was just over £340,000
However, that was still an increase of 6.3 per cent or £21,431 on the average asking price in December 2020.
Rightmove forecast that 2022 would see a return to normalcy in the property market which experienced an unprecedented boom due to the pandemic.
It explained that more houses were expected to hit the market to satisfy buyers’ demand and possibly slow down sharp price rises in the last year and half.
The buyer numbers were up 41% in an election-subdued 2019 and up 31% for 2020.
However, in contrast to this, Rightmove’s December listing of houses for sale per branch was just 14 – down from 28 the previous year.
This could soon change, however. Rightmove stated that homeowners are asking for valuations 19 percent more this month than December 2020. It suggests that people will be moving home sooner in 2019.
First-time buyer homes had a typical asking price of £211,163, whle properties for those moving home for the second time were priced at an average of £314,189
Rightmove shows that the trend in asking prices has been upwards over most of last year.
The portal reported that December was the second month in a row where asking prices have fallen.
Rightmove’s Director of Property Data Tim Bannister stated that the kind of frenetic market witnessed in the last 18 month is rare in home-owners buying or selling lives. The situation was further complicated by the more uncommon event of an international pandemic which would push homes to the top of people’s priority lists.
“While the pandemic continues to have an impact on society, as we enter the new year we expect the housing market will be moving towards normal by 2022.
“With an increase in owners asking for valuations by agents to market their properties, it seems like this group is now preparing to make it a resolution to move. This could lead to more buyers choosing to buy.
As it stands, seven out of 10 properties advertised on Rightmove are currently marked as sold subject to contract – the highest figure ever recorded and compared to just two out of ten back in 2012.
Property portal stated that asking prices would increase by another 5 percent in 2022 because of a more balanced supply-demand ratio. It would “suit more hesitant and cautious movers, who might have pulled back from the frenzied market this year.”
Rightmove predicts 2021 will see 1.5 million sales by year end. Rightmove has two months to go before the data is available. For 2014-2019, the average sales volume was around 1.25 million.
Rightmove indicated that owners who plan to put their property on the market over the next several months would be able to set a reasonable price and have high chances of succeeding.
Tomer Aboody is director at MT Finance and said that despite the strong property market and high values, the December drop in asking prices was not surprising. This has been the trend for many years.
“Sellers have a strong market with many buyers for almost every house, pushing up the prices. However, stock shortages remain a major problem for buyers. Some buyers are realizing patience is important and hoping that the next year brings more properties on the market.
“While estate agents have enjoyed one of their most successful years in terms volume, it is likely that 2022 will see normalcy in the market. While prices will continue to rise as buyers take advantage of low mortgage rates, the rate of growth will be lower and slower, making for a more calm, peaceful market.
