2021 has been a year of unforeseen highs and expected impending lows for the housing market, with uncertainty being a shadow over the UK and how supply and demand will balance the scales following the end of the stamp duty deadline. As of right now, the strength of the booming housing markets are expected to carry through to 2022 due to the ongoing stock shortage.
Whilst the reduced level of activity following the deadline of June 30 has been noted by most, the signs of the booming housing markets remaining strong have come from a variety of sources.
The stock of homes for sale is down 26.4 per cent compared to the 2020 average, with the low supply set to have an imprint on the market well into 2022. Also of note is the fact that properties are selling at a much faster volume, with the average time nearly at half of 2019 at 26 days. 2019 was averaged at around 49 days.
The increase in sales numbers over the past 12 months has seen one in twenty homes changing hands compared to one in twenty-five from 2019, with the stock shortage at its worst for homes priced up to £350k. Family homes supply has found itself much more stretched with average house prices rising 7.6 per cent in the past year, whilst flats increased by only 1.2 per cent on average.
New listings on the market are now running around 5 per cent below average, whilst increased activity from first-time buyers and investors is absorbing stock that is struggling to replenish.
First-time buyers have been on an active increase throughout 2021, backed by lenders who have been able to reintroduce higher Loan to Value mortgages. Investor demand has gone up 21 per cent due to the boost of stamp duty relief and the supply of new homes, which slowed due to the construction industry hiatus during the first lockdown, is down 11 per cent.
Whilst supply has started back strong, the dip has had an impact on the volume of available properties to buy.
For estate agents Stockport, the post-pandemic reassessment of the home has provided a larger increase in business for those looking for more natural and rural surroundings, which has created a higher than usual demand for affordable housing in and around Stockport.
As 2022 edges closer, the strong start to the year and expected seasonal trends will be expected to present more usual levels of activity among first-time buyers, with even more for those looking at how to sell a house standing to get greater levels of interest.
Even with the surge in activity and struggle to meet demand present, those looking to buy property in Stockport can contact the team at Joules today, the number one independent estate agents Stockport.