The speed with which the housing market re-opened in mid-May took many people by surprise. However, the level of engagement and activity in the market since then was predicted by many professionals.
At the time the housing market was paused, there were around 370,000 deals underway. While some of these deals will not be completed, it is understandable a lot of buyers and vendors were keen to re-commence the process as soon as they were able to.
You must also consider many people’s circumstances will have changed during the lockdown. While there are many reasons why people move home, a change in work or personal relationships are common factors in a house move.
Therefore, when the market sprang back into life, there would have been plenty of people keen to move as soon as possible, and this has been reflected in housing market figures since then.
Rightmove analysis indicates people have been keen to move
Rightmove have compiled the following statistics relating to the initial period after the market re-opened:
- A 111% week-on-week rise in new sales listings on the day the housing market re-opened
- Rental demand has risen sharply, with unique enquiries at their highest one-day level since September 2019
- The unique enquiries demand from buyers doubled from the Tuesday to the Wednesday when the market re-opened
Miles Shipside of Rightmove said; “Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks. With no new seller asking price data it’s too early to comment on price movements, though high demand is needed to support a stable market.”
HomeMover survey provides further evidence of post-lockdown demand
The HomeMover survey offers more insight into what people’s plans are as the market moves out of lockdown. Vendors who had previously intimated a desire to sell their home were canvassed for opinions, and 52% said they are committed to selling their home as quickly as possible.
27% of respondents said they are looking to sell their house as soon as they can, which hopefully means before the end of 2020. 16% of the people spoken to, who said they intend to sell their home in 2021. There was also a group of respondents, totalling 5% of the audience, who said they have changed their mind and who no longer plan to sell their home.
When you consider everything, which has happened in recent months, it shouldn’t be a surprise to see some people changing their mind. There are concerns regarding the stability of the economy, and households must review their circumstances and finance. Even at the best of times, it is vital people feel confident before committing to a house purchase, so it shouldn’t need to be said this is vital at this time.
If you have any housing market questions or queries, please feel free to contact us. At Frank Schippers, we are here to support you in this trying time, so contact us today.
