What Comes Next In The 2022 Housing Market?

At Williams of Petersfield, we are happy to help as many people as we can in the Petersfield housing market. We have assisted many buyers and vendors, and we know what people are looking for locally.

For the national market, we stay in touch with what is being said by the experts, and this helps us to help you make an informed decision.

What do the experts think will happen in 2022?

Grainne Gilmore from Zoopla was speaking with colleague Richard Donnell (as reported by the Property Industry Eye website), saying; “Richard, our latest house price report reflected what has happened in the market over the past 12 months. Prices are up 7.1% on the year, and 6.6 million homes have risen in value by more than £30,000. This is not what many would have predicted at the start of the pandemic back in March last year.”

Richard responded by saying; “Yes, the market in 2021 has been remarkably busy for agents, considering we are in a global pandemic. But, the pandemic itself has been one of the drivers of buyer demand, with many households taking lockdowns as an opportunity to reflect on where they were living, and the space in which they were living. Add to this the stamp duty holiday, and we have seen transactions rise to 1.5 million – translating into around one in 16 privately-held homes changing hands in 2021.”

What will buyers look for in 2022?

One of the biggest factors in shaping buyer activity in the past couple of years has been the need for space. It is likely that this will continue as we move forward, especially when there is still so much uncertainty over the pandemic.

Grainne said; “The rise of Omicron is causing more uncertainty for the households, and the wider economy, in the coming weeks. Our data shows a slowing in buyer demand, but it is very much in line with the usual seasonal trends. We expect a bounce back in demand in the days following Christmas and into the New Year. However, could Omicron have any impact on supply?”

Richard said; “The housing market is usually busiest in the first couple of months of the year with a spike in new listings as well as a surge in buyer interest. Starting last year with restrictions and schools closed put off many sellers. So long as schools remain open and we don’t see widespread restrictions then we would expect a strong flow of new instructions.”

What other factors will influence the 2022 housing market?

One of the reasons it is so hard to predict what will happen next in the property market is because there are so many factors involved with the process. This is why there is a need to consider as many of the factors that will shape buying processes and supplier demand as we can.

Grainne said; “There will be more economic headwinds next year, but the ‘pandemic-led’ search for space has further to run. Office-based workers will still be recalibrating their working practices and their home life, and some may choose to make a move because they no longer have to live so close to their workplace. This will continue to put upwards pressure on houses situated in wider commuter zones and more rural and coastal areas. There is more room for prices to grow in the more affordable areas, and we forecast average price rises of 4% next year, and 1.2 million transactions, roughly the same level as between 2014 and 2018. How long do you think the pandemic will continue to impact the housing market?”

Richard said; “When we look back at the pandemic in five to ten years we will recognise it marked a major turning point in the link between home and work and people’s attitudes to their home. The pandemic has engendered some seismic changes in how people want to work, and how they will work in the future. This trend has further to run, as more office-based workers decide how far they can live from the office if they do not have to be there every day into 2022 and 2023. Together with other structural factors such as an ageing population, the result should be a greater proportion of homes trading each year, bucking the decline over the last five to ten years and supporting the size of the market for agents and lenders.”

Contact Williams of Petersfield for all your 2022 housing market needs

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.