Market Comment (March 2022)
We’re now firmly settled into 2022, and hopefully, things are starting to move forward across all walks of life. The property market has started the year strongly, and there are no indications this will falter, although the Bank of England has again increased the Base Rate, with some suggesting further increases could be on the horizon.
Spring is the ideal time to list your property for sale
Given the demand for property in the UK right now, there is no bad time to list your home. However, with spring being the traditionally busy time in the housing market, right now is viewed as a great time to go to market.
Tim Bannister, Rightmove’s Director of Property Data, was quoted by Property Reporter as saying; “Spring has long been known as a peak point in the housing market calendar, with many buyers and sellers trying to get into a new home for the summer months. However, this interesting study confirms that for those considering selling this year, March has historically been the best time to come to market on average. For any sellers who might be conscious of coming to market at a time when the number of new listings has traditionally been high, the data shows us that the level of demand in March means sellers are likely to meet with multiple potential buyers competing for their home.”
Nationwide reporting further growth in property prices
There was a further increase in residential property prices in February 2022. This represents the seventh month in a row that property prices have risen.
Although mortgage rates are higher and there has been a jump in inflation, the shortage of property on the market leads to house prices continuing to rise.
Nationwide figures state that prices rose by an annual rate of 12.6% for February 2022, which is higher than the January rise, which was 11.2%.
Robert Gardner, Nationwide’s chief economist, said; “A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices. The continued buoyancy of the housing market is a little surprising, given the mounting pressure on household budgets from rising inflation, which reached a 30-year high of 5.5% in January, and since borrowing costs have started to move up from all-time lows in recent months.”
According to Nationwide figures, the average price of property in the UK is £260,230. This represents an increase of more than £44,000 since February 2020. Robert Gardner also said; “The strength is particularly noteworthy since the squeeze on household incomes has led to a significant weakening of consumer confidence.”
In a more recent comment, Rightmove has suggested the average asking price now exceeds £350,000. Tim Bannister, Rightmove’s director of property data, said: “Many of those who are selling in this record-breaking market obviously also face the prospect of buying again in the same market, and being in fierce competition against other buyers. “Having a buyer for your own property, subject to contract, puts those who are buying again in a powerful position compared to buyers who have yet to sell, and agents report that these ‘power buyers’ are more likely to get the property that they want and negotiate the best deal on price.”
What about E11?
Dataloft figures suggest, as of January 2022, the average price of a flat in E11 to be £355,547, a terrace house £ 641,147, a semi £871,917 and a detached house at £1,662,204. This is based on data they obtain from Land Registry. There is a time lag with such data because it takes a while for sale prices to update at Land Registry, so it will be interesting to compare these figures once the February and March data filter through.
Can we help you move in 2022?
If you would like to learn more about Leytonstone, or the surrounding areas and have a property you are thinking about selling this year, we would be more than happy to help.
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
Click here for an online Valuation (a starting point)
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