Housing Market Predictions
07 July 2022
As housing market conditions continue to change daily, some argue that it’s difficult to predict what could happen over the next few years.
However, for those looking to move, it’s important to have an idea of what to anticipate so you can choose the best time to put your property on the market, that way you can guarantee you can sell quickly, and for a good price.
So, what can we expect from the property market in the next few years?
End of the race for space
The pandemic trend ‘race for space’ has dominated the housing market over the last couple of years, as homeowners consistently prioritised space as one of their top requirements in a property. The combination of spending so much time at home during lockdown and businesses moving to a remote style of working meant homeowners naturally discovered how much they valued space.
However, now that pandemic restrictions are becoming a thing of the past and our work and personal lives are returning to ‘normal’, we predict that this will result in home hunters returning to their pre-pandemic habits of opting for properties with a shorter work commute over larger properties.
Cost of living crisis
Even with Government support, there are still major concerns about the cost of living due to rising energy and food costs. Due to this, many homeowners are making changes to their lifestyle and finances to alleviate the burden. We can expect to see buyers looking for more energy-efficient properties to save money on their energy bills.
House supply increasing
The biggest factor that is predicted to have an impact on the property market in the next few years is the supply of stock.
The supply and demand imbalance has been one of the biggest reason why house prices have skyrocketed over the last two years. However, even though we are slowly seeing more supply enter the market, buyer demand is likely to outnumber this for the remainder of the year at least.
Good news for first-time buyers
Due to record-level house prices and low stock availability, first-time buyers are finding it difficult to get their foot on the property ladder. Along with this, the demand and activity fuelling the housing market, is causing many first-time buyers to have to battle it out with other buyers who have the financial foundation of an existing property that puts them ahead in the buyer queue.
However, with the market cool-down predicted over the next few years, we can expect to see first-time buyer numbers return to more normal levels as stock increases and property affordability returns to more achievable levels. This may impact the renting market, as we will see fewer young people opting to rent.