If you own your home, you have a valuable asset that could bring you substantial profits if you play your cards right. With house prices at an all-time high and inflation showing no signs of calming down, many homeowners are wondering whether now could be the best time to sell their homes.
Well, if 2021 is anything to go buy, 2022 could be a great year for sellers. Here’s everything you need to know about home sales in 2021 and why it might be wise to consider selling in the coming year.
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How much did the average house seller make in 2021?
A recent report from Hamptons has revealed that the average house seller made £95,000 in 2021. This figure shows an increase from profits made in 2020, which averaged £83,550 per house sold.
Furthermore, detached houses saw even higher profits of £151,840 per home in the UK. These figures represent homeowners who bought their homes within the last 20 years. In fact, 64% of sellers in 2021 had bought their homes in the previous 10 years.
Unsurprisingly, the largest gains were seen by house sellers in London. However, 2021 was the first year that sellers in the capital made a gross gain of less than £200,000. This was the result of weaker price growth in the area.
Was it all good news for sellers in 2021?
Whilst house sellers made considerable profits last year, those who sold flats didn’t make the same gains. The profits from selling a flat fell from record figures in 2020 to just £54,690. Additionally, 19% of flat owners made a loss on their property in 2021. This is partly due to the fact that flat sellers tend to own their homes for a shorter period of time, with the average being just 8.2 years.
Should you sell your home in 2022?
The rise in house prices was one of the biggest reasons that sellers made significant profits in 2021. House price growth has been ongoing during the pandemic, and it shows no signs of slowing anytime soon.
For this reason, 2022 could be a great time to sell your home. In fact, it may be wise to sell before house prices inevitably drop, interest rates rise or buyer demand wanes. However, selling in 2022 may not be the best option for everyone. Here are some things to consider before selling in the coming year.
Have you recently refinanced and received lower mortgage rates?
If you’ve recently refinanced your home, you may have got your hands on a low mortgage rate. This low rate could help to keep your finances in check and make it easier to afford day-to-day life.
If your mortgage rate is currently lower than average, it may be worth hanging onto your home for the time being. Purchasing a new property in the current market could land you with a higher interest rate, which could outweigh the benefits of selling your current home.
How easy will it be to find a new home?
Selling your house is only attractive if you can easily find a new home to replace it. Unfortunately, in 2022 the housing supply is low compared with consumer demand. As a result, you may find it difficult to purchase a new home for you and your family.
For those who are prepared to wait for new properties to come onto the market, this won’t be a problem. However, families with children and older people may want to wait until the housing supply has increased before selling their homes.
How long have you owned your home?
The report from Hamptons shows that the best profits are seen by homeowners who have held their property for 10 years or more. On the other hand, flat owners who held their property for an average of just 8.2 years were more likely to lose money through selling.
Consequently, you may want to hold back on selling your home if you have only held it for a short period of time. Typically, the longer you hold your home for, the bigger the profits you will make.