With bated breath, we’ve all been waiting for the bubble to burst when it comes to house prices. But as the gigantic imbalance between supply and demand keeps the seesaw firmly weighed down in favour of the seller, is now the time to exhale and give consideration to whether or not now is a good time to sell?
Sold before listing
With Rightmove browsers becoming increasingly frustrated at the lack of new homes popping up online, it is becoming clear through overheard whispers at the school gates and furtive postings on village social media pages, that certain homes are now so highly prized, they are selling before ever making it onto the listings pages.
A perfect storm of Covid, stamp-duty breaks, staycations, lockdowns and the move to home-working resulted in a lack of homes coming to market. In times of panic, there is a tendency to ‘play it safe’, but with homes seeing their value increase by record breaking levels in recent years, could now be the perfect time to sell?
The trend is your friend
Rightmove predicts that average house prices will have increased by roughly 5% by the end of 2023, signifying the slowing of momentum we have anticipated following 24 months of astronomical growth. As this takes effect, buyers will be treated to a greater choice of homes, allowing them more wiggle room when it comes to price, as demand and supply finally balance each other out.
Sellers looking to take advantage of the current increase in house price value have a rare opportunity to sell their home for above what they might have anticipated only a year ago.
However, many homeowners are missing out on the opportunity to make this profit as they are concerned about the lack of new properties coming onto the market and therefore being unable to find a new home.
Naturally, concern about a lack of available homes can be a limiting factor in choosing to market your own home, however, this stalemate situation is perhaps in part fuelling the current boom in house prices, ironically creating a seller-favourable environment.
Yet there are signs the scales are resetting, with estate agents across the UK reporting an increase in instructions as sellers look to bring their homes to the market over spring time. As is the tradition in the real estate world, sellers have been hibernating over the cold winter months, ready to launch as the first signs of spring emerge like bulbs in the garden.
Your best chance
Of course, there are no absolutes when it comes to the housing market; after all, no crystal ball could have foreseen the unprecedented climb in prices over the last two years. It is impossible to know with total certainty what 2022 holds for house prices. However, one thing is for certain: in the current climate, house prices remain uncharacteristically high, meaning that selling sooner rather than later gives you the best chance of getting the price you desire.
Everybody’s circumstances and incentives for selling are unique to them, but this particular type of market is particularly beneficial for those looking to release capital by downsizing or selling a second home.
Don’t be the one standing by your for-sale board when house prices eventually flatten out, wondering what price you might have achieved.
Nobody wants to show their hand too early, but holding onto your cards after the stakes have changed can be even less favourable. For advice on what’s happening in the market where you are, give us a call to hear our professional, informed recommendations. We will listen to your circumstances, hear your story and offer our thoughts on how the market can best work for you.