Zoopla Says Housing Market Rebound Unprecedented
25th June 2020 posted in Property News
You have probably read or heard the word “unprecedented” more times in the past few months than you did for the rest of your life to this point. It is fair to say the COVID-19 pandemic has had a massive impact on everyday life, and virtually everything we do.
As you know, it has had a massive impact on the housing market. At Hunters Bridgend, we follow guidance from the Welsh Government, and our market hasn’t opened up in the manner the English housing market has. However, with restrictions loosening, and a review set for 18 June, this might change.
Currently, property moves in Wales can happen if they cannot be postponed, but the market has slowed down outside of these features. Many would-be movers, and of course property market professionals, have looked at the English market and wondered if we should be operating too.
Safety will be paramount when Welsh housing market re-opens
It is fair to say that opinions are divided on this matter, and if the Welsh housing market is to re-open, safety is paramount. However, the latest analysis and data from Zoopla suggests that then suppressed level of demand has created more robust property prices.
Also, the average asking price of property sales agreed in the last week stand 6% higher than the same figures for 2019. This has left some experts predicting house prices might not fall in the short-term.
Zoopla suggests demand for housing is 54% higher than it was at the beginning of March. This indicates there has been a one-off boost to the market, and Zoopla says agreed sales are now just 12% short of the figures from early March. Since the housing market in England has re-opened, the volume of sales has increased by 137%.
A one-off spike might happen in Wales too
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.”
While this will see many people looking forward with a touch of optimism, Mr Donnell also 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.”
Things are set to change in the Welsh housing market, but we vow to keep you informed, and we promise to provide a safe service to all clients when the market re-opens.
At Hunters Bridgend, we are proud to play a part in supporting a thriving and friendly local community. If you would like information or guidance on how we can assist you, or you just want to stay in touch with the latest housing industry news, please contact us today.