The release of the pent-up demand in the housing market since restrictions have been lifted has led to surge in new sales agreed, with figures recovering to almost the levels we saw in March before lockdown.
Zoopla have released their latest data and analysis which has revealed that the increase in demand has also led to stronger prices, with average asking prices of the sales that have been agreed in the last week 6% higher than June 2019.
Although prices may have seen a bounce in the short term, some fixed-term mortgage rates have dropped to a record low of 1.15% as borrowing costs for banks and building societies have fallen in response to the coronavirus lockdown.
This demand for housing has seen a 54% increase compared to the figures released at the start of March. This is a huge one-off boost which has brought large volume of would-be movers to the housing market during the last four weeks.
Zoopla found that sales agreed are now just 12% short of the levels seen in early March with the volume rising by 137% since the market reopened.
Richard Donnell, director of research at Zoopla, comments: “The rebound in housing demand is not solely explained by a return of pent-up demand,” he said. “Covid has brought a whole new group of would-be buyers into the housing market. Activity has grown across all pricing levels, but the higher the value of a home, the greater the increase in supply and sales as people look to trade up.
However, Mr Donnell did add a note of caution: “The charts are off the scale, but I do think this is a one-off surge in demand, a temporary jump.
No one truly knows what the economic impact [of Covid-19] is going to be. The housing market is purely an extension of the economy and I am very cautious about the second half of the year.”
If you are now starting to look at property to find your new home Avery & Co. would be happy to help you. We offer a range of services covering the survey and valuation of properties. All of our surveyors are registered with The RICS and are able to provide you with independent advice and information regarding the property you wish to buy.
Buying a house is the single biggest investment many of us will ever make and ensuring that you have a comprehensive survey done before you commit to buy could save you thousands of pounds in expensive repairs or put you in a strong position to renegotiate the asking price.
If you would like more information or to book a survey, please do get in touch, we would be happy to talk you through your options. You can contact us via the website or you can call us on 0151 321 2000 to talk about your requirements. We’d be happy to hear from you.
