Home sales rebound, while prices are expected to continue to rise

The number of real estate deals closed in November was up 24.3% from October, according to the latest data from HM Revenue & Customs (HMRC).

The data shows that there were 96,290 residential transactions, on a seasonally adjusted basis, a significant increase from the previous month. But that was down 16.4% from the corresponding month last year.

The number of non-residential real estate transactions also saw a notable increase during the month. HMRC data estimated that, on a seasonally adjusted basis, 10,840 non-residential transactions took place, up 9% month-on-month and 15.9% year-on-year.

HMRC noted that the increase came following a drop in October figures, which coincided with the end of the stamp duty holiday.

He estimates there will be 939,750 residential real estate transactions, which, if true, would be the busiest year of the past decade.

Reaction of the real estate sector:

Nick Leeming, President of Jackson-Stops, commented, “The numbers show that even as the effects of SDLT vacations are slowly being eliminated from national reports, we are still seeing buyers acting with intention and being motivated by rather lifestyle aspirations. than financial. economy.

“As in previous years, we expect early January to see an increase in activity, and our branches are certainly still invited to evaluate many homes at the start of the new year as sellers look to take advantage of the new prospects. While low inventories are expected to continue to boost the housing market in the first months of 2022, we expect that the upward movement in inflationary pressures will do little to dampen transaction volumes and that these will remain stable over time. approaching the new year. While a wider uncertainty surrounding the new variant is a risk, many buyers and sellers are now accustomed to transacting in this new standard and agents have been able to implement a variety of finely tuned processes to protect all parties involved.

These complex and continuing changes in the country’s working patterns and lifestyle aspirations continue to fuel the needs of the housing market and even more so as we head into 2022. Home hunters are always looking for more flexible, spacious properties. and rural than where they lived before the pandemic, with nearly a third (30%) of Jackson-Stops branches reporting an increase in buyers asking for homes with easy access to the open countryside with hiking routes picturesque. If we were to revert to a narrower pandemic period of life, it would only increase the resolve of buyers looking for a better way of life. “

Iain McKenzie, CEO of the Guild of Property Professionals, said: “Home sales rebounded strongly in November, recovering from a decline in October caused by the end of the September stamp holiday.

“The resurgence shows the strength of the real estate market, particularly at a time of uncertainty caused by rising inflation and concerns over impending Covid restrictions.

Demand for properties far exceeds the weak supply of new housing in the market, and we expect housing prices to continue their steady rise in early 2022. “

Anthony Codling, CEO of real estate platform Twindig, commented: ‘While we would be cautious reading too much provisional one month data, it seems at first glance the UK property market is healthy, maybe is it doubled and boosted?

“The rebound implies that there is more to the underlying level of real estate transactions than the impact of stamp duty holidays alone. The pandemic is having a significant impact on where and how we choose to live and where and how we let’s choose to work (wine and cheese anyone?), and it looks like the space race isn’t over yet. ”

Jonathan Hopper, CEO of Garrington Property Finders, commented: “After the October post-stamp tariff slump, the real estate market picked up in November as thousands of people began their search for property. housing in the summer have finally moved into their new home in time for Christmas.

“With the number of completed sales up almost a quarter from its October level last month, the pace of transactions has been sustained rather than dazzling.

“In many ways the numbers are a throwback to business as usual – about where they typically are at this time of year, rather than matching the overheated levels seen for much of the year. 2021.

“The point is, while buyer demand remains strong, the number of homes put on the market is not keeping up – slowing the number of deals and steadily increasing average prices paid by more than 10% per year.

“Despite all the price dynamics, the market is not fluid enough and the imbalance between supply and demand still leads to metronomic price increases – even though the more foamy extremes of the market have collapsed as buyers become more pragmatic in their approach and more willing to walk away and wait if the price isn’t right.

“The arrival of the Omicron variant is now prompting both sides of the market to recalibrate. Supply is expected to slow as some sellers choose to stay out until the prospect of another foreclosure wears off, while buyers remain engaged but become increasingly demanding.

“After the 2021 roller coaster for the real estate market, 2022 may not be less eventful. “

Andrew Southern, chairman of property developer Southern Grove, said: “The UK property market is starting to spark again following a lull in transactions with the end of the stamp duty holiday.

“After the October cliff edge, a great wave of momentum begins to build again with the potential for even more dramatic growth at the start of the New Year when we traditionally see an abundance of new listings that can help. satisfy the insatiable demand that still exists.

“While the broader impact of rising interest rates and soaring Omicron infections is still unknown, market fundamentals remain as strong as ever until 2022.

“There is still a great hunger among buyers of larger homes with more outdoor space, and a successful roll-out of the government’s stimulus package combined with a broader economic recovery could energize the market for some time to come. “

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