House Prices Reach Record Highs For Fourth Time But First Signs Of Decline Shown
For the fourth consecutive time this year, house prices have risen on average to record highs, however with this milestone comes signs that the market is beginning to cool, albeit more slowly than analysts have predicted.
According to Rightmove’s House Price Index, the average price of a property entering the market has increased to £367,501, £7,400 higher than the previous month.
For context, this is over £1000 higher than the average house price index in the two years before March 2020.
This means that the average house price has increased by £55,000 in the last two years alone, smashing all previous records and providing some perspective on an incredibly eventful two years for Hackney estate agents, buyers and sellers alike.
However, whilst prices in Hackney have increased, as they have in the rest of the country, there are signs that the market may be shifting in ways that have been predicted since late 2020.
The number of sales agreed is actually down 17 per cent compared to last year, although it is still up 12 per cent from 2019.
This, alongside the price increases, have both been caused in part by a decrease in available properties, with there being less than half the number of homes on the market compared to 2019.
However, a mix of more sellers considering putting their homes on the market and economic stresses such as interest rate rises, energy cap price increases and the cost of living are expected to affect buyer demand and therefore prices later in the year.
As we have seen at least three times over the past few years, buyers will prioritise finishing a sale and moving whilst they can afford to if there is a risk of economic pressures affecting that sale.
As such, whilst 2022 has started with record high after record high, the housing market is likely to experience changes over the next few months.