When will the house price boom come to an end?
As we see another month of rising house prices, we ask will we soon see an end to the property boom which has persisted for so long?
MS
Manning Stainton
Current Prices
Last month, as expected we continued to see upwards pressure on house prices with the average property being placed under offer being sold 12% more than it would have been this time last year and get this, almost 27% more than it would have been if you were selling at this time in 2019 befire the pandemic. These are astonishing numbers!However, as I keep saying this growth will have to come to an end at some point. Every boom in prices since records began is followed by either a plateau or as was the case in 2007 a fall in prices
Are we at the end of the boom?
The Rightmove asking price index showed that prices had kept growing, increasing 2.1% in the Month of May 2022. An interesting statistic from this index also showed that new buyer registrations were 14% lower in May 2022 than they were in May 2021. So, is this a sign that the house price boom is coming to an end? Yes, it is possibly a sign of what is to come. However, in the Northern market we haven’t yet observed this with our own numbers suggesting that demand for property continues to grow. Across our group we have noticed a 4% increase in new buyer registrations when compared to May 2021. This might come as a surprise given that recent news headlines are filled with rising interest rates and a cost of living crises, but it is important to remember that mortgage payments have remained low against historic averages. Which we believe is why the demand in our region has remained so strong.
