It was never expected! No one could predict how it would end. Boom or crash. The uncertainties surrounding the housing market because of the pandemic have left many homeowners no other option than to fold their arms.
Surprisingly, the aftermath of coronavirus has brought a smile on the investor\’s face with the housing demand reaching a record-breaking ten-year high. The average sales price for existing homes jumped to an all-time high of £329,100 (historic annual rate of 17.2%). March\’s National price rise commemorates the 109 consecutive months of annual gains.
Report of Rightmove
A report from Rightmove has revealed that the implementation of lockdown accompanied by the new government inducement has led to the surge of housing demand, making the market the strongest spring seller\’s market in the past decade. Rightmove expects more price increase during the traditional spring selling season and suggests that \”the current boom in the housing market is the largest we have experienced so far in the previous decade\”. Selling your housing property this Easter could be a big catch.
Data published by the portal this week shows that the UK is currently experiencing an all-time excess demand oversupply in the past ten years. The statistics indicate this year\’s demand is 34% greater than the previous year\’s demand (considering this period last year) thereby, pushing the market average price of homes to £2,484 this month. The trend further explains that homeowners are willing to sell their homes since agreements have been reached for two-third of the properties listed for sale.
Demand For Property
In Lawrence Yun\’s words, the NAR\’s chief economist, while consumers are experiencing heightening interest rates, low affordability issues, and higher home prices, there is still a hot demand for homes in the market. He further added that if there had been sufficient homes listed in March, the sales would have been measurably higher. \”The interest rate is still favourable despite the increment, and the economic forecasts look promising\”, said Yun.
With more than 50℅ of the adults vaccinated, the report shows that the housing stats and employment data show optimism of more supply and robust demand in the housing market.
Rightmove’s Director of Property
Tim Bannister, Rightmove’s Director of Property Data comments, “Concerns of a cliff edge for the housing market at the end of March have dissipated as a result of tax deadline extensions in all of the UK bar Scotland and also because of the high level of buyer demand due to the lockdowns.
\”This high Demand for Property will increase the more from April by the new Government guarantees enabling lenders to bring back 5% deposit mortgages. Although it may not the perfect time to buy for some people who have been adversely affected by the pandemic, the record buyer demand measured by Rightmove shows that now is the right time for many. we record low interest rates, and the new focus on what your home needs to offer after several lockdowns have led us to the highest excess of demand oversupply in the last ten years. This strong sellers’ market is favourable news for those who want to put their home on the market as the traditional Easter selling season approaches.\”
Bannister continues, “A lot of sales have been agreed in the last few months, and there is a shortage of homes available for sale. Higher supply to match the high Demand for Property would alleviate upwards price pressure. Price rises will also be affected by the strict lending criteria imposed by the Bank of England upon lenders following the Mortgage Market Review in 2014.\”
James Forrester, Managing Director of Barrows and Forrester, added that if you’re considering selling up, now is the best time to that because you’ll be able to take advantage of these favourable market conditions, which will reduce the time it takes you to find a buyer.
