While we are all keen to see positive news right now, it would be wrong to say things are positive when they are not. Ever since the housing market re-opened in May, there have been positive signs, but if you looked a bit deeper, there has been evidence to suggest that positivity might be short-lived.
An example of this was stated for the high level of activity in the market when it was safe for people to move again. While it was pleasing to see many people looking to move home, it was likely that people whose house move was delayed because of lockdown were at the forefront of this demand.
Also, people whose personal circumstances changed during lockdown will likely have been keen to move. With these two factors, it was inevitable that people were going to be active in the housing market.
Stamp duty holiday should lead to further sales
Since then, many industry experts have predicted demand will dampen down, but the stamp duty holiday has impacted these thoughts. The Office for Budget Responsibility (OBR) examined the likely impact of the stamp duty holiday. They concluded an additional 100,000 property sales are likely to happen in the country, which is another positive sign.
Therefore, at Hunters Camberwell, we believe there are signs we are on the road to recovery. Each household must consider their circumstances, and of course, the impact of COVID-19 is changing all the time. There will likely be more economic shocks and problems to overcome before we can feel too confident about the future.
Looking for signs of property market recovery? We are here to help
However, there are reasons for positivity, and we are keen to share some of the recovery signs that Dataloft are bringing to people’s attention right now:
· According to Nationwide house price index figures, there was an annual increase of 1.5% for July 2020.
· This return is positive, especially in comparison with the June 2020 figures, which was a -0.1% annual increase.
· For June 2020, there were 40,010 mortgages approved. This is an increase of 331% compared to the May 2020 mortgage approvals.
· In May 2019, a total of 9,273 mortgage approvals were noted, which was the lowest figure on record.
· However, the June 2020 mortgage approval figures are 39.4% down on the June 2019 figures.
· HMRC estimates a total of 63,250 transactions concluded in June, which represents a 31.7% rise on the May 2020 figures.
· However, the June 2020 figures were 35.9% lower than the June 2019 figure.
If you are looking to move, and you need guidance from a mortgage professional, please get in touch with Hunters Camberwell. We are pleased to say we have assisted many vendors and buyers in the local area, and we are assisting many people in the current market.
If you are looking for guidance or information regarding the housing market, please get in touch with Hunters Camberwell. As a local estate agent who has the support of a national network, we are ideally placed to provide you with all the help and guidance you need to make an informed decision, so please contact us today.