22 April 2020
Here are 6 things that we might see happen to the property market, once the lockdown ends…. you might want to get comfy or read this in stages, it’s a bit long for a blog, I got carried away, apologies!
An increase in the number of properties being listed for sale
Similar to the increase in activity that we saw in January this year once the Brexit stalemate finally ended, only this time as well as those sellers who were always planning on listing in the Spring/Summer, we could see a few more motivated sellers enter the market following the impact of the virus, needing to release some funds, along with those who have taken this time at home to reassess their lives and may just want to bank the equity from their properties and downsize.
An increase in buyer enquiries
Those that have been looking to move home this year, but have been frustrated with the lack of available properties will once again register their intentions and start their home search as they see new properties being listed. Mortgage product availability will increase again after the initial knee jerk pulling of a number of products by lenders, as they will once again need to compete for business.
Will we see a Stamp Duty holiday?
Industry bodies and leading London Estate Agents are already calling on the Government to implement this to kickstart the property market which would definitely help offset any negative sentiment. I think anything’s possible right now given the Government’s huge support measures and I think we’d all love to see this cut long term too!
What will happen to property values?
The ultimate question. The Brexit stalemate over the past year or two saw a slight drift of a few percent in values – so ultimately not much and values were pretty stable. It was more a case of buyers bidding 5-10% lower and sellers sticking to their guns at higher levels. Effectively a stand off. This time around if we can come out of lockdown and can get businesses and employment back under way within the next month or two I feel that homeowners finances will be okay, dented but okay and a swift recovery back to normal will be possible.
If, however, there are widespread city redundancies and local businesses can’t ride out the storm, the rise in unemployment will inevitably put downward pressure on property values in 2020 and a correction will follow. I don’t believe our region will experience the 13% fall in UK prices that the CEBR are estimating as I don’t believe the majority of sellers in and around this area will need to accept anything this low, but a 5-10% correction, or stalemate situation once again, in my view, seems more likely. We live in a generally highly desirable and affluent region, so I think the South East will ultimately fair better than most.
How will buyers view properties after the lockdown?
To protect you and your loved ones and us, I’m certain that all responsible Estate Agents will want to implement changes to the way properties are viewed when we are once again able to show homes for sale. We’ll follow the guidance given but I wouldn’t be surprised to see gloves and masks become the norm for all prospective buyers, sellers and agents to wear when showing a property, hand sanitiser on entering maybe, as well as social distancing measures. We already have virtual viewings now and these will be available as a replacement or in addition to in person viewings too.
How will we value your homes after the lockdown?
Similar to the above we will most likely wear masks and gloves for your protection and ours and ask sellers to do the same, keeping social distancing measures too. Alternatively if you felt more comfortable we have all the research tools to hand and technology to do a remote Zoom / Whatsapp / FaceTime valuation of your home where you could walk us around your home. We’ve already done this for some clients and it’s been fun over a tea or coffee.
That’s it, apologies it’s so long and to reiterate these are just my thoughts.
If you have any questions or concerns about how the current situation will affect your plans for your home move, please just give me a call or email me.
We’re here for you now and will be here for you when this is all over.
Stay safe and keep well
Grace & Rose Estate Agents
t: 01277 623010
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