Thursday, September 3, 2020

Latest Trends: Rightmove: Housing market mini-boom defies seasonal slowdown

Featured in Click Lancashire


Dominic Murphy, taking care of director of DM & Co estate brokers in Solihull, reported: "I suspect that the current market will continue being buoyant until finally job losses filter by and seriously commence to strike the sector in total force". Given the number of sales agreed at present time increasing to a ten-year high, there is an increased pressure on the transporters.

The firm has seen monthly price increases in 10 out of 12 regions, with a record high in new seller asking prices in seven of those regions despite the highest number of properties coming onto the market in a single month in over 10 years. Only in London was there the typical 2% monthly fall in summer asking prices.
Rightmove said the increase was driven by an exodus from London, which saw a 2.0 percent drop in prices, and a rise nearly everywhere else. The boost in activities in the property market in July 2020 was fuelled by the government's announcement of a temporary stamp duty holiday on homes priced up to £500,000 in England and £250,000 in Wales and Scotland in early July 2020. They're up 29 per cent in the first-time buyer sector, 38 per cent in the second stepper sector and 59 per cent for larger, top of the ladder homes. Whereas there is usually a seasonal slowdown as buyers and sellers turn their attention towards summer holidays, the latest weekly sales agreed figure is a whopping 60% above the same period a year ago. We have also noted significant year-on-year increases in viewing and valuation requests, homes coming to market and the number of homes being placed under offer". There are 44% more properties coming to market compared to the same period a year ago, though there are considerable regional variations.

Rightmove director and market analyst Miles Shipside observed that activity wasn't just driven by the stamp duty holiday. As the sellers sought to make the most of the rising demand, the asking prices reached record levels for around seven regions across the UK.

A lot more than £37bn worthy of assets profits have been agreed in July - the busiest month for home getting for 10 several years, in accordance to house internet site Rightmove. Nonetheless, the mini boom in the housing market might not be a long term one, as the economy is now in a recession and unemployment rate is expected to increase.

"More property is coming to market than a year ago in all regions, and at a national level the new supply and heightened demand seem relatively balanced." With work and transport patterns potentially changing most around the capital, commuter-belt properties need to have more appeal to prospective buyers than just proximity to a station.

Tomer Aboody, director of MT Finance, said: "The shift from quiet summer for the housing market to a manic one isn't surprising due to quarantine rules imposed on travelling overseas so the vast majority are staying in the United Kingdom and getting on with buying and selling."

Britons bought and sold a record number of homes in recent weeks as pent-up demand from the CCP virus lockdown and a desire to leave London bucked the usual summer slowdown, industry data showed on Monday. The increase has largely been put down to the Chancellor's decision to implement a stamp duty holiday, however the increases being seen by Rightmove suggest that this may not be the only contributing factor.

Marc von Grundherr, director of estate agency Benham and Reeves, added: "Sales are at unprecedented levels and listings too and so we're seeing both sides of the property market boiling." (Click Lancashire)



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