Property market post-lockdown continues to surge
Recent market data shows that now could be the best time to sell your house. Demand in the market continues to surge post-lockdown.
Property Reporter says:
“While Leicester goes into lockdown following a regional flare-up of Covid-19 cases, the economy in all other regions throughout England has begun to recover with most non-essential shops, pubs and restaurants back to business by 4th July. Boris Johnson has promised that the UK will not return to austerity of 10 years ago.
Nicky Stevenson, MD of Fine & Country UK, says: “According to Zoopla, six weeks after the property market reopened, sales agreed were 4% higher than pre-Covid-19 levels. HMRC estimate that 46,230 residential transactions completed in May, 25% higher than April, however a -52% annual decrease.”
Shortage of mortgage products
However, there are fewer mortgage products available because of the uncertainty with the economy. Property Reporter goes on to say:
“Stevenson notes that lenders are being more cautious due to uncertainty around house prices and unemployment. The number of high loan-to-value mortgage products available are still a long way off pre Covid-19 levels.
She adds: “Just 14 products with 95% loan-to-value were available on 26th June and 72 with 90% loan-to-value, this will have the biggest impact on first-time buyers.””
The Property Reporter article does go on to say that they expect that more mortgage products will become available. Therefore, if now is the best time to sell for you then you should be okay, especially if you have equity in your home.
House prices are still increasing
Property reporter says:
“Stevenson comments:…“Zoopla reported a 2.4% annual increase, Halifax 2.6% and Nationwide 1.8%. The surge in demand as the housing market reopened in England is likely to have prevented a fall in house prices. The housing market in Wales, Scotland, and Northern Ireland reopened towards the end of June, and we hope they will see a similar surge in demand, which, in turn, will help sustain UK house prices.””
This is great news if you want to sell and may suggest that now is the best time to sell. But, there is a long road ahead in the coronavirus crisis so, what might happen next?
It’s the economy, stupid!
Now, we are certainly not calling you stupid! “It’s the economy, stupid!” was a phrased used by Bill Clinton’s election strategist in his successful 1992 campaign. But, it is still true today. Property Reporter says about the economy:
“…the economy contracted by 10.4% in the three months to April and by 20.4% in April alone. Oxford Economics believe the fall in GDP in April marks the bottom of the downturn. Also, inflation is at a four-year low, at 0.5%. This is due to a 16.7% fall in fuel prices, as well as declines in clothing and footwear.
However, with people unable to spend money during lockdown, it is no surprise. The UK unemployment rate for the three months prior to April was 3.9% but with around 9 million jobs supported by furlough, we will not understand the true impact on employment until the scheme ends in October. The Bank of England scenario, where lockdown is relaxed in June, expects the economy to contract by 14% in 2020, rebounding in 2021 to 15%, back to pre Covid-19 levels by mid-2021.”
We believe we will see many more redundancies as we get closer to the October furlough deadline. The government are trying their absolute best to help employers keep their staff but we have already seen job losses. In travel, British Airways recently let a huge amount of their staff go and in retail even John Lewis & Boots have announced job losses already.
Best time to sell now? Yes!…or wait longer term.
So, what do we think? We think that as we close towards the end of the year the market will continue to be very active. However, the activity will decrease in sales and increase in the amount of properties coming onto the market. Post-lockdown has seen a huge amount of the housing stock being bought up. Once that stock has reduced, houses will continue to come onto the market. Although, there will be less buyers for those properties as the economy is hit by job losses in late 2020 and early 2021.
So, we think that now is the best time to sell if you know you will need to move in the next 18 months to 2 years. If you feel you can hang on, then we think homeowners should wait for 2-3 years to allow the economy to recover.
Sell My House Quickly Leeds
Here at Sell My House Quickly we will always base our prices on an ethical basis that meets all the needs of both the seller and the buyer. We are local to Leeds and our valuations are not made by a central team who don’t understand the area but, by local Leeds property specialists. This means we will be in contact with you very quickly to help resolve any property worries – because we know it can be stressful when it comes to both buying and selling your house or flat.