11 Jan RESIDENTIAL MARKET, LATE 2021 TO EARLY 2022
The residential property market in Cardiff has remained buoyant throughout 2021 and the early signs are that this is continuing in 2022. Large numbers of requests for valuations and instructions are being received after the festive period, indicating continuing optimism and confidence in the market. Values for the most attractive properties have proved strong, with large numbers of viewings leading to several offers, often having to go to sealed bids, achieving prices which on average are 5% to 10% over the asking prices.
The complexity and complications arising during the progression of sales is the main factor slowing transaction times and this has been exacerbated by some conveyancers either working part time or from home, resulting in sales taking 10 to 15 weeks to complete from start to finish.
The average house price in Cardiff for 2021 is £289,596 showing an average annual change of 16.5% increase. Demand is particularly strong in the popular 2 bed starter homes and traditional 3 bed semi-detached dwellings, where continued pent-up demand has lead to a record level of viewings for most listings. Over 60% of our sales are achieved to buyers coming from outside the area, over the Prince of Wales Bridge from Bath and Bristol areas, relocating to Cardiff, where homes offer better value for money and a safe family environment, bearing in mind that Cardiff is rated as one of the most desirable cities in the UK to reside. Working from home is becoming the norm for some and attending the office less frequently has meant that the new ‘wish list’ requirement of a home office and larger garden space, has meant great appeal to purchasers considering Cardiff as an area to which to relocate.
In the rental market, rents have increased on average by 20%, which has encouraged many established landlords to increase their portfolio, competing with would-be first time buyers in the sales market, adding fuel to demand and house price increases.
Many housing analysts are predicting a 5% increase in house prices for 2022, however we feel that in 2021, house prices increased on average by 15% plus, which cannot be sustained, so our view is that house prices for 2022 will stabilise and increase marginally between 1% and 3%.
At the present time we are pleased to note that Kelvin Francis are market leaders for new stock and for sales agreed in Cardiff North. (evidenced on Rightmove ‘For Sale’ and ‘Sold’ together).
As a firm, Kelvin Francis were pleased to have been awarded the title of ‘Best Estate Agency, Single Office Wales’ by the prestigious ‘UK and International Property Awards’ organisation, in December 2021.