Pent up Demand Continues: Buying & Rental
Since the housing market re-opened on 13 May, all the signs continue to show that confidence is returning as pent up demand continues.
Industry Insight from Dataloft
Dataloft are property market experts, specialising in market intelligence.
Based on their recent research, 95% of all sellers who were planning to move before lockdown, still plan to do so. This echoes what other industry professionals have shared.
On 8 June 2020, Dataloft launched Dataloft Demand Index for the housing community. This tracks housing demand since 15 March 2020 at a local level, based on estate agent data. In turn, they believe that this dataset will be a highly responsive indicator for potential housing demand across the UK.
Based on their dataset, Dataloft report that by the end of May 2020, their Index was 71% higher than it had been a month earlier.
Industry Insight from Home
Home.co.uk uses search engine technology to build and maintain comprehensive data on the UK's properties listed for sale and rent on the internet.
Their June Asking Price Index confirmed that sellers who re-enter the market are doing so with a higher sale price because they know there is pent-up demand.
Doug Sheppard, Director at Home, says:
"Both the overwhelming demand for mortgage applications and the remarkable confidence amongst vendors bode extremely well for the grand restart of the UK housing market.
Last month I was in the somewhat bizarre position of writing about a property market that, to all intents and purposes, did not exist. Thankfully, both supply and demand are now bouncing back. New listings are returning and are being met with significant demand.
Now that many of the COVID-19 restrictions have been lifted we are seeing a rebalancing of both demand and supply. Demand, being chiefly credit based, looks thus far to be considerable and little dented by the economic woes brought on by the pandemic. The resurgence of supply has been slower for practical reasons (social distancing) and perhaps also due to less motivated vendors preferring to wait and see before committing or, indeed, preferring to let their properties."
"My expectations are for a profound uplift in activity and significant competition for the limited supply of properties will drive up prices."
Home predicts a further two to three months before the market finds its new ‘post-pandemic equilibrium. They also confirm that the true impact on the housing market will not be known until the financial results are in for Quarter 3.
Home share the average asking price as well as trend since 2014 below:
Read more here.
The lettings market has also exceeded expectations with an increase in valuations and viewings. The first two weeks in June saw new and completed applications surging above those of 2019.
Outlook for August and September
Although the school holidays are typically quieter, this year, the outlook is different. August and September are expected to be busy from the backlog of those that were planning to move pre-lockdown and those that have decided to move following their extended home stay during lockdown.
We'd love to hear your thoughts about this positive news and whether you are a homeowner whose now decided to sell. We look forward to hearing from you at email@example.com.
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