As we move into Q2 of 2022, has the housing market’s bubble burst since the pandemic sent house prices skyrocketing?
Anyone with their hand on the pulse of the housing market knows that it completely surprised us in the last few years. Just when everyone thought the bottom would drop out of the market, prices shot heavenwards. The British government U-turned overnight from considering freezing it to protect prices, to letting it run rampant. Since then, property buyers and sellers all over the globe have described the boom as a “bubble” … but has that bubble burst?
Let’s talk about the housing market. What’s it doing, why is it doing that, and how can we fix it? Does it even need fixed? Here’s all you need to know as we move into Q2 in 2022.
Home Upgrades are on the Rise
Another area of real estate we have seen significant activity in, is the home upgrade sector. Either through DIY or through official routes, people are extending their properties to give themselves more square yardage and a better quality of home life. Home improvement based companies experienced an average 8.5% increase in sales in the 2020/2021 period. We suspect this trend will continue well into the future, at least until the harsh memories of the pandemic fade.
The home improvement sector has been pushed on by the introduction of the HELOC model in the UK. This lending technique has seen use in Australia and the USA previously, allowing homeowners to unlock the equity potential of their properties. The lender sells one product and the buyer unlocks 80% of the value of their property, less what they still owe on the mortgage. You can learn more about it with https://www.selinaadvance.com/.
Global Real Estate is a Seller’s Market
The pandemic shifted property prices dramatically, upping the average median house prices all over the globe. The real estate market has become a seller’s market in the residential sector. Unfortunately, progress in this area has been a little lopsided. Residential properties are selling like wildfire, while the selling off of office blocks and retail establishments is taking its toll on the economy in other ways.
Real estate is a seller’s market in 2022, as long as you are buying and selling homes. The global surge in DIY and property upgrades ahs led to a global surge in the average house price. According to the Office of National Statistics, the UK housing market experienced a surge in property prices throughout that two year period from 2020 to 2021. The average cost of a house in the UK increased by 10.2% in that single year.
Will the Housing Market Bubble Burst?
Now we all know from experience that housing prices surge like this only to plateau for a few months or years in slow growth mode. The housing market bubble left over from covid is different to anything we have seen before. People bought and moved to increase their quality of life. As the memories of the last few years start to fade, the bubble will burst once more.