The speed with which the housing market re-opened might have caught many people by surprise, but many property market specialists predicted the level of activity. It is helpful to understand why there was a property demand spike when the market re-opened, and also, why this initial burst of demand from buyers and vendors might not last.
At Stones Residential, we believe it is best to take a cautious approach as to how the market moves forward from here.
With so many property deals paused because of the lockdown, re-opening the market has enabled a lot of people to conclude a move. However, safety and social distancing remain paramount. We appreciate many clients have concerns, or need additional guidance, before entering the housing market.
We are more than happy to assist you, so please get in touch.
Many buyers and vendors were keen to resurrect deals
One of the strongest reasons there was a significant level of activity when the market re-opened is because of the property deals which were placed on hold. It is believed there were around 370,000 deals in this position.
Even allowing for some deals being abandoned, there is a good chance many buyers and vendors were eager to conclude their move as soon as they were allowed to do so.
Another factor in the initial spike in demand for property moves is related to the lockdown, and a change in circumstances many people or households experienced. There are many reasons to move home, but a change in employment status or a shift in personal circumstances are common factors.
Some of the people engaging estate agents within hours or days of the market re-opening will have found themselves in one of these categories. While there will be debate as to whether the market should have re-opened in mid-May, there were households who needed to move as soon as it was allowed.
Property portal analysis outlines the demand for property
Rightmove have compiled the following statistics relating to the initial period after the market re-opened:
- A 111% week-on-week rise in new sales listings on the day the housing market re-opened
- Rental demand has risen sharply, with unique enquiries at their highest one-day level since September 2019
- The unique enquiries demand from buyers doubled from the Tuesday to the Wednesday when the market re-opened
Miles Shipside of Rightmove said; “Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks. With no new seller asking price data it’s too early to comment on price movements, though high demand is needed to support a stable market.”
Many vendors remain keen to move
The Dataloft HomeMover survey provided insight into the mindset of vendors who were planning to sell their home before the lockdown. As a company, we are committed to supporting vendors, and clear communication is integral to our services.
During the lockdown, it is likely that virtually every household across the country re-evaluated their circumstances. Therefore, it is interesting to note the opinion of the homeowners who were looking to sell their property, and whether they are of the same view now the market has re-opened.
52% of vendors who were planning on selling their home before the market was paused still intend to sell their house as soon as they possibly can. A further 27% of respondents remain committed to selling their home and are intent on selling their home at some point in what is left of 2020.
There is also a group of vendors whose plans to sell their home have been postponed until 2021. 16% of respondents intend to sell next year, and 5% of respondents no longer plan on selling their home.
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your home, contact us today online or by calling us on 020 8954 0045.