House Prices 2022
We’ve come to the end of the first quarter of 2022, as well as the end of the 2021/22 tax year. And I predict that the second quarter of 2022 will cause quite a storm…
I’ve pulled together a quick summary of my thoughts on the property industry at the end of the tax year, going into the second quarter.
What could cause house prices go down in 2022?
The average price tag on a home in Great Britain has topped £350,000 for the first time, according to Rightmove.
It was found that the typical asking prices hit £354,564 in March, up 1.7% or £5,760 compared with February, the property website said. It was the biggest monthly rise for this time of year in 18 years, AND it pushed the annual rate of growth in asking prices to 10.4%.
Annual growth was above 10% for all regions and countries except London and Scotland.
Rightmove said the jump up in asking prices was partly driven by a huge mismatch between supply and demand, with more than twice as many buyers as there were sellers. For those putting their home on the market right now, the chance of finding a buyer in the first week is higher than it has ever been for this time of year, and twice as likely compared with the same period in 2019.
Will house prices go down in 2022?
The tide is turning… so will 2022 see house prices go down?
We are slowly changing from a sellers’ market to a buyers’ market. A number of factors will be putting homeowners and landlords under extra financial pressure, such as increased interest rates on mortgages, higher inflation, increased utility bills and increased petrol prices. More people will be forced to sell their property, which in turn is likely to see house prices go down in 2022 as there are likely to be many more properties on the market and so more competitively priced.
When house prices go down in 2022 – my top tips.
As always, conduct your due diligence and only buy for positive cashflow.
I would also stress test my current borrowing rates and add 2% to my current loan rate, to see if the investment is still cash positive. After all, you don’t want to become a motivated seller…
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