Initial figures provided by Rightmove and Zoopla when the housing market re-opened indicated there was a strong level of pent-up demand in the housing market. Further analysis from Zoopla indicates there has been a significant rebound in the housing market, and figures have come close to the levels they were at in early March.
According to Zoopla, the market is experiencing stronger prices. The average asking price for agreed sales was 6% higher than for the same period in June 2019. This has given hope to property prices not falling away too sharply in the short-term.
Given Zoopla is a highly respected name in the English housing market, many people will feel a sense of confidence in these figures.
Demand for property has risen
It also appears as though demand for property is now 54% higher than it was at the beginning of March. There is no denying the opening of the housing market saw an initial spike, but this looks to have continued. Zoopla has also said that sales agreed are just 12% short of the figures reached in early March. Since the re-opening of the housing market, sales volume has risen by 137%.
Richard Donnell is the Director of Research at Zoopla, and he said; “The rebound in housing demand is not solely explained by a return of pent-up demand. 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. New sales in London are lagging as buyers look at commuting and moving to the regions.”
It is best to remain cautious about the housing market
While there will be some optimism surrounding the initial figures after the re-opening of the housing market, it is best to be cautious as to how the market will fare as we move forward. Mr Donnell said; “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.”
At Hunters Stoke Newington, we are working hard to assist our audience, and we are observing the housing market closely. If you are looking for guidance or support from a local property market specialist, please get in touch.
It is likely there will be further peaks and troughs as the market moves forward, but you can rest assured you will receive the finest support and service from us.
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Stoke Newington today for all your housing and letting needs.