Buyers have the fewest available property choices since 2004, according to Rightmove
The number of homes that realtors typically have for sale have dropped to the lowest on a real estate website’s records after 18 “frantic” months.
A year ago, realtors had an average of 28 homes per branch on their books, but now that average has halved to just 14, according to Rightmove.
This means that sellers entering the market in the next few months and pricing their homes correctly have a good chance of being successful in the sale, he said.
The website said it was the lowest level per real estate agency it had ever recorded. His figures on this go back to 2004.
“While the pandemic still has an ever-changing impact on society as the New Year approaches, we expect a housing market to approach normal during 2022.”
There are signs, however, that a new supply of properties is in the works. Requests from homeowners to real estate agents to have their homes appraised are up 19% from the same period a year ago, indicating that more choices will hit the market in the new year.
The average price of a house fell by £ 2,234 month-on-month in December.
Across Britain, the average asking price is £ 340,167, down 0.7% from November, Rightmove said.
Asking prices in December are on average 6.3% higher than a year ago – and Rightmove predicts that prices could rise another 5% next year.
Increasing accessibility to buyers and a wider choice of properties for sale will reduce sellers’ “pricing power”, Rightmove predicts.
“However, despite strong demand, buyers will have limits on what they can afford or are willing to pay.
“Plus, with inventory availability so low, any property that is left around stands out like a sore thumb and goes out of date pretty quickly.
“Rekindling interest in a property, which potential buyers have ignored as being out of date and overpriced, often results in larger price reductions below what might have been a successful initial asking price. “
Guy Robinson, Head of Residential Agency at Strutt & Parker, said: “Demand from buyers continues to be strong and the number of applicants is still significantly higher per property than at any time since 2006.
“Within London, activity slowed slightly with the onset of autumn, following a high level of transactions in the main central London market during the first half of the year. However, we expect the market to rebound over the next 12 months if international travel can resume as expected, releasing pent-up demand in the market.
“Outside of London, every region outperformed in 2021, in terms of number of deals, with coastal villages and major Cotswolds hotspots, and the £ 500,000 to £ 700,000 price range is the biggest market. dynamic.
“As for next year, cities like Norfolk, Herefordshire and places a little less traditional could be the biggest winners, as buyers increasingly feel confident to move away from London. “
Oliver James, partner of James Dean Estate Agents in Wales, said: “We have had a fantastic year, selling more properties than ever before.
“We have seen a real increase in demand, especially for properties in semi-rural areas with gardens and views. Covid has changed people’s lifestyle choices, and increasingly common work from home allows people to move out of cities.
However, the wi-fi speed becomes even more important, which can be problematic for rural properties. The new instructions have been lower than normal, which, combined with high demand, has caused several buyers to want to the same property.
“This resulted in properties being sold for more than the asking price.
“So now is a great time to be a seller, however, low inventory levels have also meant that some sellers have taken offers or even prices out of the market when they are looking for their next purchase.
“Next year we expect the market to remain strong, however the main concern is inventory levels. We need more new instructions. Many salespeople say, “I want to sell, but I haven’t seen anything that I like”.
“In this competitive market, it’s important for sellers to put their own home on the market before looking for their next purchase, because it puts them in the best position when a property they love hits the market.
Guy Gittins, CEO of Chestertons, said: “Despite the pandemic, we have had record performance in the market this year with a high number of home hunters looking for larger properties with outdoor space.”
He added, “As demand continues to outstrip supply, we anticipate a strong sellers market and further price increases. “
Marc von Grundherr, Director of Benham and Reeves, said: “In a year that has remained largely overshadowed by the uncertainty of Covid, we have seen a still resilient real estate market continue to show extremely high levels of growth in housing prices. “