What will happen to house prices in 2022?
A question on everyone's lips right now.
Various predictions from the usual suspects have been released. How accurate can they be, however, when no-one can predict when, or even if, the listings crisis will be over this year?
A question on everyone's lips right now.
Various predictions from the usual suspects have been released. How accurate can they be, however, when no-one can predict when, or even if, the listings crisis will be over this year?
Low supply has been driving up prices for some time.
Once people become priced out (e.g. affordability issues, etc) & buyer demand falls, it's likely there will be a lag phase that will continue to support, but not lift, prices.
We wouldn't expect an immediate adjustment.
Once people become priced out (e.g. affordability issues, etc) & buyer demand falls, it's likely there will be a lag phase that will continue to support, but not lift, prices.
We wouldn't expect an immediate adjustment.
What happens next is critical.
If supply stays low & it coincides with falling buyer demand, we have the worst combination possible.
Prices will, however, find their own level as they always do.
Higher supply with low demand will typically put downward pressure on prices.
If supply stays low & it coincides with falling buyer demand, we have the worst combination possible.
Prices will, however, find their own level as they always do.
Higher supply with low demand will typically put downward pressure on prices.
How quickly prices will fall is anyone's guess, however, no-one wants to see a stagnant market.
A fast-deteriorating economy could see a return of higher levels of forced sales. If buyer demand remained subdued, further downward pressure on prices would ensue.
A fast-deteriorating economy could see a return of higher levels of forced sales. If buyer demand remained subdued, further downward pressure on prices would ensue.
As things stand, we are confident in predicting a contraction in house prices in 2022, however, to quantify it at this point is impossible. We hope that there can be as much damage limitation as possible but we don't mean for the Government to continue meddling in the market.
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