January 2022 was a bittersweet month for many home buyers in Cheadle, but also could potentially signal a significant change in the local property market, which may encourage more people to put their properties on the market, before the winds of change hit house prices.
In January, we saw for the first time in a year, more houses come onto the market than the same time month last year. It was only a modest rise of 9% but should offer some encouragement to home buyers. We saw an increase in the number of semi-detached homes, bungalows and flats coming to the market, but still a shortage of detached and terraced homes.
No sign of house prices abating anytime soon
House prices rose a massive 13.4% across SK8 and SK3 last year and although they dropped back a little year on year in December and January, prices clearly show no sign of abating anytime soon. In fact, figures published yesterday show that prices nationally have risen at the fastest pace for 17 years year on year in January, with prices in January alone going up 11.2%. The issue now for many first-time buyers is finding a typical 10% deposit in now the equivalent to 60% of annual gross earnings, although remarkably many buyers clearly remain unperturbed as the number of transactions in 2021 was the highest since 2007 and around 25% higher than in 2019 pre pandemic.
Will Interest rate and energy cap rises turn the tide?
And, despite another interest rate rise today from 0.25% to 0.5% – the second increase in three months and the announcement of the removal of the energy cap and 50% plus rises in energy bills for families, the demand remains higher than ever, with the average number of daily property viewings up 46.6% on last January, yet on average there was 40% less stock down from 672 to 401.
The sales comparison stats show a 23% drop from last January, but this again is a slightly skewered stat based on lack of stock not demand. The most noticeable drops were in the number of detached, semi-detached and terraced homes, whilst flats and bungalows remained pretty consistent.
The vicious circle causes market stalemate
What is very clear is it is a vicious circle. Lots of people we speak to are reluctant to list their property as they simply cannot see any suitable alternatives to buy, but this creates a self-perpetuating problem. If you are seriously considering a move in 2022, you need to put your own house on the market, because if something you like does come available, you can guarantee there will be somebody in a better position and will be able to move on it before you can get your own house on the market. By holding back, it just causes a stalemate and lack of supply pushes prices up.
If you would like an idea as to the value of your home in 2022, please call Joe, Patrick or Maurice on 0161 428 3663, e-mail sales@mkiea.co.uk or visit our website and choose from our three free valuation options online https://mkiea.co.uk/valuation/
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