Average asking prices for properties coming to market have dropped by an average of 0.7% so far in December, the largest monthly fall since January, according to Rightmove.
Strong buyer demand is carrying forward into 2022, with November showing buyer numbers 41% up on election-subdued 2019, and still 3% up on 2020, while fully available stock for sale has hit a new record low this month.
Meanwhile, the number of homes estate agents have for sale dropped to the lowest on record. According to the property portal, estate agents had an average of 28 homes per branch on their books 12 months ago, the average has now halved to just 14.
But while fully available stock for sale has hit a new record low this month, valuation requests from homeowners are 19% up on this time a year ago, suggesting more people will be looking to move home in the coming months.
Strong buyer demand is carrying forward into 2022, with November showing buyer numbers 41% up on election-subdued 2019, and still 3% up on booming 2020
With two months of data yet to be reported, 2021 has already seen the highest level of completed home sales since 2007, and Rightmove expects 1.5 million for the full year:
Some 70% properties advertised on Rightmove are currently marked as sold subject to contract, compared to just two out of ten back in 2012, underpinning our prediction of a further 5% price rise in 2022.
Tomer Aboody, director of property lender MT Finance, said: “Even with the strongest property market we have seen in over 14 years and values hitting all-time highs, the December dip in asking prices isn’t surprising, and has been the norm over the years.
“Sellers are in an extremely strong position with multiple buyers for nearly every home, which is pushing up prices, but lack of stock is still a huge issue for buyers. Some are ultimately realising that patience is key, hoping the next year will bring more properties to the market.
“While estate agents are enjoying one of their best years in terms of the volume of sales, 2022 is expected to see a return to normality in the market. Prices will still rise, as buyers make the most of cheap mortgage rates but the pace of increase will be slower and lower, which will make for a calmer, less frenzied market.’
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “The big story for the housing market this year – and the past few months in particular – has been lack of supply.
“We are still registering many more buyers for each available property so don’t expect any significant price correction soon despite concerns about the rapid spread of the Omicron variant and imminent interest rate rises. On the contrary, we believe the new rules on mask wearing and home working will result in release of further pent-up demand as buyers continue to seek more flexible homes reflecting changing working patterns and lifestyles.
“We expect more balance between demand and supply too if our recent significant increase in requests for market appraisals and early January listings are anything to go by.”
