Home Price Prediction 2022: When Should You Buy a New Home in 2022
For homebuyers, every penny counts for household bills, tax hikes and rising interest rates are another tough year for would-be movers. The Halifax Home Price Index today revealed that house prices rose 9.8% in 2021 in a booming year for the market.
This is the largest annual increase since 2004, when prices rose 12.5%.
In terms of cash, house prices have increased by an average of Â£ 24,000, the biggest year-over-year increase since 2007.
The surge in prices was caused by historically low mortgage rates, the stamp duty holiday, behavioral changes and a housing shortage.
But the brakes are already on the rise rapidly, with 2022 looking less buoyant.
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Real estate experts believe the market will decline over the course of the year, providing much needed respite for buyers.
But a specific period when buyers are expected to strike isn’t easy to predict – but most experts advise waiting until later in the year before making any offers.
Lewis Shaw, founder of Mansfield-based Shaw Financial Services, told Express.co.uk that first-time buyers should wait and see what’s going on in the market before committing to a property.
He said: âThe prices aren’t going to collapse, but they’re definitely going to drop in 2022, so some first-time buyers might want to wait a few months to see what happens.
He advised, âPeople should buy when they are ready and determined to buy.
âIf you plan to hold the property for several years, the vagaries of house prices are less relevant. If you want to buy and the funds are in place, then buy.
He said waiting for a drop might not be as lucrative as buyers had hoped, as ongoing supply issues will keep prices high.
He continued: âWhile prices are likely to decline slightly in 2022, the lack of stock means any decline will be only marginal.
âIt’s hard to see a dramatic U-turn turn into a buyer’s market flooded with inventory, so if you see the home that’s right for you, go for it. “
But Paul Neal of Derbyshire-based broker Missing Element Mortgage Services told Express.co.uk the huge housing shortage means potential buyers are expected to strike while the iron is hot.
He said, âIn today’s market, with the insane lack of supply, the right time to buy is when you find the right property. It is that simple.
Mr Neal said prices are certainly likely to ‘cool’ in 2022, there won’t be a significant drop – so prices between the start and end of the year are unlikely to be very far away.