My Thoughts On The Wellingborough Property Market For The Remainder Of 2022

The average asking price of properties for sale in Wellingborough increased every month from January 2021, when they were £215,584, all the way up to their peak of £266,097 in April 2022  (an increase of £50,513 or around 23%).

Since April however, there were two consecutive months where asking prices dipped followed by the most recent two months where they have again begun to rise, without reaching the heights of the April peak.

Data from ZooplaPro

Historically, we usually see a gradual climb in asking prices in the first few months of the year. Then we see a slight drop in the summer as people go on holiday, and then they jump up a bit as we hit the autumn market.

In the last few months of the year, we start to see prices fall as people think more about festive celebrations than moving home.

Though there is more to consider than just where we are in the historical ups and downs as the year passes.
We have spiralling inflation, a spike in energy prices (depending on what the new Prime Minister decides) and increasing interest rates.

All these things need to be considered.

Our outgoings on the higher energy prices may be curbed by the new PM, with discussions taking place regarding freezing prices at their current rate for the next two years (we’ll find out more in the coming days), so there is hopefully one less potential concern for us to worry about.

Back in 2008 when the last financial crisis hit the property market hard, interest rates were nearly 6%. About three times higher than the Bank of England’s target for the end of 2022, meaning things are much more affordable than they were then.

Also, back in 2008, banks withdrew their lending so people were stuck with mortgages they couldn’t pay. Today, there are a plentiful number of mortgages to choose from, enabling homeowners and buyers to decrease their monthly payments, release funds or sometimes both.

Regarding inflation, it currently stands at 10.1% at the time of writing, with the Bank of England predicting it to reach 13% in the coming months but expect it to fall in 2023.

This is what I think will happen in the coming months

Demand for properties is still high and isn’t likely to go anywhere as buyers are still largely looking for bigger homes with more outdoor space.
What may change is people’s priorities when deciding whether to put their money into a new home.

Whilst there is some uncertainty with ongoing cost of living, there may be hesitancy to put all their savings down on a deposit when they aren’t sure if they’ll be able to cover their existing bills.

We should hopefully see a large amount of these worries alleviated in the coming days and weeks. Along with an end to inflation in sight (according to BoE) and more confidence after a new PM is appointed, we are likely to see more buyers in the market and therefore a further uptick in asking prices, before the customary quieter period before Christmas.

In the new year, come new optimism and new starts for many buyers so I expect a strong start to 2023, though will revisit this more closely when we get nearer the time.

The average asking price of properties for sale in Wellingborough increased every month from January 2021, when they were £215,584, all the way up to their peak of £266,097 in April 2022  (an increase of £50,513 or around 23%).

Since April however, there were two consecutive months where asking prices dipped followed by the most recent two months where they have again begun to rise, without reaching the heights of the April peak.

Data from ZooplaPro

Historically, we usually see a gradual climb in asking prices in the first few months of the year. Then we see a slight drop in the summer as people go on holiday, and then they jump up a bit as we hit the autumn market.

In the last few months of the year, we start to see prices fall as people think more about festive celebrations than moving home.

Though there is more to consider than just where we are in the historical ups and downs as the year passes.
We have spiralling inflation, a spike in energy prices (depending on what the new Prime Minister decides) and increasing interest rates.

All these things need to be considered.

Our outgoings on the higher energy prices may be curbed by the new PM, with discussions taking place regarding freezing prices at their current rate for the next two years (we’ll find out more in the coming days), so there is hopefully one less potential concern for us to worry about.

Back in 2008 when the last financial crisis hit the property market hard, interest rates were nearly 6%. About three times higher than the Bank of England’s target for the end of 2022, meaning things are much more affordable than they were then.

Also, back in 2008, banks withdrew their lending so people were stuck with mortgages they couldn’t pay. Today, there are a plentiful number of mortgages to choose from, enabling homeowners and buyers to decrease their monthly payments, release funds or sometimes both.

Regarding inflation, it currently stands at 10.1% at the time of writing, with the Bank of England predicting it to reach 13% in the coming months but expect it to fall in 2023.

This is what I think will happen in the coming months

Demand for properties is still high and isn’t likely to go anywhere as buyers are still largely looking for bigger homes with more outdoor space.
What may change is people’s priorities when deciding whether to put their money into a new home.

Whilst there is some uncertainty with ongoing cost of living, there may be hesitancy to put all their savings down on a deposit when they aren’t sure if they’ll be able to cover their existing bills.

We should hopefully see a large amount of these worries alleviated in the coming days and weeks. Along with an end to inflation in sight (according to BoE) and more confidence after a new PM is appointed, we are likely to see more buyers in the market and therefore a further uptick in asking prices, before the customary quieter period before Christmas.

In the new year, come new optimism and new starts for many buyers so I expect a strong start to 2023, though will revisit this more closely when we get nearer the time.