Will Housing Prices Come Down in 2022?
It’s already 2022, and surely, a lot of us are looking into buying and settling into our own homes if possible. However, let’s face it — housing prices are far from being affordable and budget-friendly. You need to have a ton of money, no matter if you’re applying for a monthly or annual mortgage, or you plan on paying the property in full.
That said, will housing prices come down in 2022? Is this year finally the time where we can cop low-cost properties? Let’s find out in the following sections.
Before we proceed, however, make sure that you already have a mortgage solicitor if you’re already eyeing a property. They will take care of all your legal needs, including, but not limited to transferring papers to your name, settling the deed of sale, and more. IF you don’t have one yet, you can go to conveyancingstore.co.uk.
Three Factors that Affect Housing Costs
There are a lot of factors that can affect the cost of housing in a country. It’s important that you have an idea about this, so you will know when will be the best time to browse properties. For reference, here are the top three factors to consider:
Location is probably one of the biggest playing factors when it comes to how much a property is priced. The city, nearby establishments, foot traffic, and other similar factors will all affect the housing cost. As a rule of thumb, the more accessible the property is, the higher the price.
On a side note, in the UK, some places with the cheapest housing prices include North and West Yorkshire, County Durham, Northern Ireland, and Scotland. The lowest cost that you can cop here amounts to around £50,000. On the other hand, Winchester is deemed the most expensive with an average house price of around £600,000.
Of course, the current economy will also affect housing costs. After all, the market still follows the supply and demand logic.
This 2022, the economy is deeply affected by the Russia-Ukraine war. This applies to all countries worldwide. This is also one of the main reasons behind the foreseen increase in housing prices.
Even so, some reports believe that the housing prices will eventually be balanced this year. It will depend on other economic factors, like the UK’s current state, foreseen inflation and interest rates, and more.
The last on our list is the property’s condition. Of course, the better the condition and specifications of a property, the more expensive it will be.
To make sure that you won’t be at a disadvantage when it comes to how much you will pay for a property, make sure to work with a professional. Find a conveyancing solicitor quote that is within your budget, and go through all your legal concerns from there.
Current and Predicted Housing Prices in the UK
For comparison, the average housing price in the UK last year, 2021, comes up to £271,000. This is dated November 2021. Data showed that it incurred an increase of more than £20,000 from the average costs in 2020.
As of April 2022, however, just four months after the previous section, it showed that the housing prices climbed up to an average of £278,000. More reports also came up regarding the continuous inflation in the housing market of the country.
By the end of 2022, people should expect an overall increase of 6.2% in housing costs and an additional 2.3% by 2023.
Are We Seeing A Decrease In House Prices in the Future?
Based on the current housing market, the expected price predictions in the coming years, and the current state of the world economy, we can conclude that we aren’t seeing a decrease in housing prices in the near future. Realistically speaking, we may still be far from
this goal, no matter what country we’re talking about. We first have to wait for the current price inflation to subside, this is, until 2025 according to reports, before we see signs of price dips.
So, will housing prices come down this year, 2022?
Unfortunately, there are still no signs of price decrease when it comes to housing and real estate in general. In fact, experts actually see a price hike rather than a dip. The increase won’t be that significant, but it still means that the public may find it hard to cop a property in the present. It’s probable that this will go on until 2025 until the hike finally stops.
That said, if you need recommendations for (somewhat) cheap housing prices in the UK, you can check out Northern Ireland, Durham, and Yorkshire.- by Matt Watts