One month on and early signs are good for the property market
Friday 12th June marked one month since the property market reopened for business. Since the Government lifted several restrictions to the buying, selling and moving processes which enabled the housing market to get back “on the move”, many people waited to see how the seven week freeze in the property sector would affect the market.
Property is one of the keys to a successful economy as it is the most affected by inflation, market demand and the strength of the economy is in turn determined by how much lenders are willing to lend. As the property market entered a total slowdown, many were anxious to see how well it would recover again, and whether there would be any lasting damage to the economy.
However, early indications are good. Since the flood gates opened on 12th June, the market appears to be in the early stages of a bounceback, with some experts even claiming that it has continued to pick up where it left off.
The latest research by the Royal Institute of Chartered Surveyors (RICS) shows that new buyer enquiries has significantly increased during the month of May. During April, as the market entered a complete freeze, enquiries dropped to a record low of -94% before climbing back up to -5% in May. Despite all indicators still being in the negative, the improvement in the market is a positive step towards recovery of the market.
It seems some online estate agency portals are seeing the same increases in demand. Rightmove reported their busiest day ever, with record breaking highs of website visits exceeding 6 million visits during the last week of May.
Whilst we may not be there yet in terms of a completely stable recovery, these will no doubt be reassuring signs for many. As people make more shrewd decisions relating to their finances, as a result of COVID-19 and a decrease in home income caused by loss of work and other factors, we could see a shift in the way people make offers on properties, which is something to bear in mind if you are thinking of selling up in the short to medium term.
However, if you are in a position to buy a new property, you might find you have plenty of choice, as many people upgrade their homes for more space both inside and out, or even move location completely to be closer to family or go for a change of scenery.
It will be interesting to see how the property market changes post-COVID and we will certainly be keeping a close eye on the sector in the coming months. In the meantime, if you have a query relating to your own property purchase or sale, contact Downs Solicitors to see how we can help.