Have you sold your home but find yourself struggling to find something? If so, you are not alone. The housing market feel like it is stuck in one huge traffic jam.
Demand for homes has been outpacing supply ever since the market reopened in June 2020 with only a slight deceleration when the stamp duty break came to an end.
New instructions recorded a net balance of -14% in December resulting in a 9 month run of falls. It is this lack of stock that is putting a cap on sales activity and why so many people can’t find a house to move to. The additional problem has been that buyer demand rose by 9% across the UK. Look closer to home in Lancaster and Morecambe and it rose even higher.
However there is light at the end of the tunnel. Whilst this report is based on the market upto the end of December, here at JDG we have seen the market start to turn in January.
Did you see our market update report for Lancaster and Morecambe for January 2022? Buyer demand is still sky high, but new instructions were up 20% in Lancaster and 21% in Morecambe. We are also seeing lots more people having their homes valued. This will turn into more homes coming available for sale which should start to free up those jammed up homes. Already in February 102 new homes have been listed for sale across Lancaster and Morecambe, which is 12% up on last year!
So in a nutshell, house price growth is likely to continue due to the imbalance in supply and demand. More stock is needed to unlock the system and ensure chains can be completed. If you are thinking of moving, can we talk?
My name is Michelle Gallagher. You can call me on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle x