Property markets are cyclical in nature, and it is essential for homeowners to understand this when making decisions regarding their property. While property prices may rise and fall over time, historical data shows that the market tends to perform well over the long term. In this blog post, we have delved through the archives to report on how property markets have performed historically, specifically over a seven-year period.

1. The Lucky Number Seven: Staying in a Property for Seven Years

The number seven is considered lucky by many, and it holds true for homeowners as well. According to industry experts, if you stay in a property for seven years, it is likely to have risen in value. This is because property markets tend to follow a cyclical pattern, with prices rising and falling over time.

2. Historical Data Shows Positive Growth in Property Prices

Analysis of historic monthly house price data from Nationwide indicates that at no point since records began in 1952, has national 7-year property price growth been in negative territory. This means that over a seven-year period, property prices have consistently increased, providing a positive return on investment for homeowners.

3. Long-Term Homeownership is Common

Over 60% of recent sellers had lived in their property for more than seven years, indicating that long-term homeownership is common. This suggests that many homeowners understand the cyclical nature of property markets and are willing to ride out any short-term fluctuations in prices.

4. Homemovers Expect to Stay in their New Homes for Five Years or More

According to a recent survey, more than three in four homemovers expect to live in their new home for a minimum of five years. This indicates that homeowners are making long-term decisions when it comes to their property investments, which is a positive sign for the property market as a whole.

5. Average Property Prices Have Risen Over the Past Seven Years

Over the past seven years, average property prices have risen by over 30%, according to data from Dataloft, Nationwide, and the Property Academy Home Moving Trends Survey 2022. This further highlights the positive trend in property prices over the long term, and provides evidence for the benefits of long-term homeownership.

6. Property Markets Can be Affected by External Factors

While property markets tend to follow a cyclical pattern, they can be affected by external factors such as economic recessions, political instability, and changes in interest rates. Homeowners should be aware of these factors and consider them when making decisions regarding their property investments.

7. Understanding Property Cycles is Essential for Homeowners

In conclusion, understanding the cyclical nature of property markets is essential for homeowners. While short-term fluctuations in prices may occur, historical data shows that property prices tend to increase over the long term. By staying in a property for seven years or more, homeowners are likely to see a positive return on their investment, and this can provide financial stability and security for the future.