2022 property market review and our 2023 predictions
In this short video, we take a look over the local property market and give you an insight into how property performed in 2022 and what we expect to happen over the next 12 months
Towards the back end of last year, we saw the property market go quiet, this was due to rocketing mortgage costs and a lot of scaremongering in the media. Nationwide's property index shows that house prices fell locally by around 3% towards the end of the year but still show a 2% rise overall.
Here at THINK, we have already seen positive signs heading into the new year with new listings and valuations coming in at the same levels as 2021 and 2022, which as we know have been notably busy years. Buyer registration is also up with 86 new buyers registering for property alerts in the last 4 weeks.
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This is a great sign that buyers are coming back to the market, we believe this is due to lowering mortgage rates. Both the average two and five-year fixed rates fell month-on-month for the second month running, down to 5.79% and 5.63%, following 13 consecutive months of rises recorded up to November 2022. At 5.79%, the average two-year fixed rate dropped by 0.22% – falling below 6.00% for the first time since October 2022.
So what does all that mean for the coming 12 months?
Is now a good time to sell your home or buy a new one?
Well, the truth is nobody really knows what is going to happen but by analysing the market conditions we can see that mortgage rates are coming down and hopefully inflation and the cost of living will settle more this year, we predict modest growth of around 2% over the year meaning that if you had a home worth £300,000 at the beginning of the year by the end of 2023 we would hope to see the value increase to the £306,000 mark.
As the market settles over the coming months and people make their way back to the market we expect to see the usual busy spring period.
The rental market continues to stay strong locally with rent rising around 10% in 2022. We expect this trend to continue into 2023 as landlords' mortgages become more expensive and high demand from tenants will continue to drive up prices. Landlords are optimistic for the year ahead as a recent survey shows that 56% of landlords plan to expand their portfolio over the coming months.
Thanks for reading and if you have any questions please get in touch with our teams on 01925 290290 or 01744 371371
