Page 7 - Inspire from Oakwood

A view of the property market
Oakwood Estates Sales Director, Edward Godfrey, gives his insight into the current shape of the property market and what might be in store for the year ahead...
2021 was a record year for sales at Oakwood Estates with over 290 transactions taking place. But what can we expect for 2022?
The end of the stamp duty holiday has failed to dampen demand from potential buyers, which is up 30% on the five-year average.
Thanks to the tapering- off period at the end of the holiday, the anticipated ‘cliff
edge’ is nowhere to be seen, and the pandemic-induced boom still has further to run.
• According to the latest ‘Zoopla’ House Price Index report, 1.5 million homes changed hands in 2021 beating 2007’s previous record.
• The combination of a nation re-evaluating what they want from a home, low mortgage rates and the stamp duty holiday have all driven unprecedented levels of demand.
• At Oakwood Estates, homes collectively worth £130m were sold in 2021, that’s double the number of offers accepted in 2020.
However, for this year the level of activity is expected to slow as the market faces a number of headwinds. The housing market will be influenced by both positive and negative factors.
On the positive side, the pandemic-induced search for space shows no sign of abating.
The ability to work from home has expanded the horizons for many office workers who now feel able to look further afield.
The high levels of equity homeowners have built up during the past 18 months, and the shortage of homes on the market, is expected to support house price growth well into 2022.
But on the downside, the rising cost of living, combined with an expectation that mortgage rates and taxes will rise next year, will impact affordability.
Transaction levels are expected to fall by 20% in line with the long-running average but are still comparatively high compared with the past decade.
If you’re thinking of moving, it remains a great time to put your home on the market as demand from potential buyers is continuing to outstrip supply.
Unfortunately, these same dynamics may make it challenging to find your next home.
Do as much research as you can before listing your current property and talk to local estate agents to find out how fast the market is moving in your area.
If the market is moving very quickly, you may want to have an offer accepted on a property you want to buy before listing your current home for sale.
7|