2022 Market Forecast & Property Trends by Rory Brickell
After another frenetic year within the property market, 2022 is looking set to be more evenly paced and closer to the norm in contrast to a booming 2020/21, fuelled by significant pent-up demand and a Stamp Duty holiday. Perhaps most importantly people, having spent so much time at home over the course of various lockdowns, placed increased value on where they reside, and explored ways to improve upon the place they call ‘home’. The hot housed nature of the last 18 months had inevitably slowed somewhat during the months of November and December, allowing estate agents around the county to ‘catch a breath’.
Laskowski & Co registered a staggering total of 1,776 new applicants within 2021 and successfully conducted 1,644 viewings, leading to an eye watering 357 offers over 150 + properties. Having undertaken over 400 market appraisals within the year, it has clearly shown a dramatic increase in activity which will perpetuate activity in 2022 without doubt. Interestingly, completed house sales overtook previous 2007 highs, with 2 months of reporting still to be released according to HMRC. Due to continued increasing demand, Laskowski & Co appointed 2 new agents, Priscilla Smith and Richard Dryden, both residents of Falmouth, who bring with them a combined experience of 21 years within the industry adding to the accompaniment of other highly experience staff who are on hand day in – day out for clients and purchasers alike.
With such a dramatically increased number of new buyers transitioning into homes within the local area, at all-time-high prices, what will be the new trends seen within 2022 for property? Are prices expected to rise? Will a quantity of new homes available start to pick up in the short term? Will those all-important stock levels replenish quickly to continue a fluid motion so many ready, willing and able buyers are keen to see? Of course, high asking prices and steadfast selling figures will typically encourage homeowners to ‘take the plunge’ in 2022, with a degree of expectancy derived from the continuation of the favoured ‘sellers’ market’ trend into the New Year and beyond.
These all-important questions will be placed under the microscope as soon as January, a litmus test for the year ahead, driving strong activity and usually the busiest month of the year for enquiries according to national property portals, Zoopla and Rightmove. Reassuringly, it has been cited that market appraisal requests grew by 19% in December (according to Rightmove) showing a positive jump in comparison to an already unnaturally busy December in 2020 due to the extension in Stamp Duty relief set by the Government previously.
Will house prices continue to rise in 2022 in the South West? Throughout the year it is expected that overall house price growth will continue to rise by an average of 5% (nationally), with the South West reaching a slightly higher expected average of 7%. As more potential buyers continue to search for meaningful outdoor space, coastal boltholes and vibrant seaside areas, Cornwall, in particular, will showcase a myriad of appealing opportunities as notions such as the ‘work from home’ scenario provide greater flexibility, allowing more options when moving/relocating further afield and seeking a better work/life balance as a whole. For young families, this may be the catalyst to taking the first step onto the property market fulfilling their property hopes and dreams.
As one of Falmouth’s busiest residential sales offices, we have found a high level of demand, post pandemic, for buyers requiring sizeable homes of all different styles and types from terraced town houses to detached village homes situated more inland with at least 3/4 bedrooms. A standout request which has increased dramatically has been the apparent lean towards larger outdoor spaces, with the additional option of outbuildings such as a workshop or studio, together with ancillary accommodation such as an annexe. The lure of adaptable working space or ancillary income has pushed prices for properties such as this beyond many owners’ expectations, even if such a home remains unfinished cosmetically.
What may surprise keen property enthusiasts, despite the desire for outside space, is the continued high demand for apartments. Of those apartment sales we have seen in 2021, the more successful have been those with flexible leases, a water-fronting locality, and an ability to gain income via means such as holiday letting through Airbnb or more reputable local firms such as Falmouth Holiday Homes or Cornish Holiday Cottages. Naturally, with the above ‘tick boxes’ in place, these apartments continue to see plentiful footfall with increased viewing volumes and, more often than not, multiple offers from buyers locally and out of county alike.
Looking ahead into what is set to be another promising year for the Cornish property market, we fully expect to see a return of quality family homes between the prices of £400,000 – £600,0000, together with local and national housebuilders propping up the new homes market for those purchasers wanting their first house or indeed their next home. The rise of high quality local building firms has also seen many interesting and unique homes enter the market with record prices achieved, attributed to what can only be seen as acute attention to detail, their non-estate nature and general all-round quality finish. This can be reflected in our marketing of the new, detached homes in The Walled Garden, Penryn. More information on these excellent properties, and other new developments we have successfully sold, can be found by clicking here.
Should you have a property matching one or all of the above requirements, we would be delighted to hear from you! You can get in contact with us on our main office line (01326 318813) or via email ([email protected]) for an informal no obligation discussion.