The latest analysis of the housing market by reallymoving suggests that there will be further rises in average UK houses prices throughout the spring, taking them to a record level by summer.
According to this analysis, the rises in mortgage rates and general increase in the cost of living will do nothing to dent price growth this spring. That is down to the continuing shortage of available houses to buy compared with the level of demand. The reallymoving House Price Forecast states that the supply shortage will drive up average prices as high as £389,712 by June of this year.
The data contained within this forecast shows that the number of houses on the market has reached record low levels, while demand among buyers is unusually high for the time of year. This is ensuring that the drop in prices that was expected due to increases in the cost of living is not yet happening.
It may simply be delayed though, as reallymoving has indicated that advisors are reporting higher numbers of down-valuations. That suggests lenders are not prepared to provide sizeable enough loans to meet what would-be homebuyers are willing to pay. Coupled with rate rises, the growth in house prices may come to an end during the second half of 2022.
Rob Houghton from reallymoving stated that unwillingness to go heavily into debt at a time when the cost of living is going up would eventually impact the market.
Most advisors with a CeMAP qualification will welcome a drop in average prices.