Everything has been affected by Covid-19, including the housing market. The impact has been severe because viewing and sales have slowed. In fact, those that were in the process have either faced delays or postponement. Furthermore, there are fears that the economy will drop because of the pandemic; and this will affect the price of homes, as well. As such, it has become a concern for those who wish to sell their houses in the coming months.
The lockdown led to the delays of 373,000 property transactions, with an estimation of over £82 billion in value. This information is according to the UK Cities House Price Index by Zoopla. The demand for houses fell by over 70% in March, and the level of browsing for properties online has fallen.
Although, reports show that many potential buyers are still intending to keep on pressing ahead with planning. In fact, 60% of home buyers are still intending to purchase a property. On the other hand, 40% are still putting plans to hold their plans to purchase due to the uncertainty. However, as restrictions are now being lifted, activity in the market has begun to increase, which is surprising.
What Does Coronavirus Mean For the Housing Market?
As the market is starting to open up, property owners and potential purchasers are speculating what it means to the price in the coming months. Although there are many predictions on the market, it is not possible to say with surety what will happen.
All that we are sure of is that the economy has been affected by the lockdown and also potential customer’s confidence. This could mean that the demand for property in the short term will decrease as more potential customers prefer to wait and see what approach they will take or the decision they will make. If the recession follows as people are predicting, this may lead to house prices falling.
The house prices fell by 1.7% in May compared to previous months, according to Nationwide statistics. This is the largest property price fall for 11 years, which happened during the financial crisis. According to a statement by Robert Gardner, who is Nationwide’s Chief Economist – we all have seen the sharp economic reduction due to all the imposed measures to combat the spread of the virus. However, the measures implemented to support individuals and businesses should play a role in creating an economic rebound. As such, this may affect the housing market positively.
What Does A Fall In Property Prices Mean?
Do you plan to sell your property or home? Of course, no one wants to see the value of their asset fall. Many of us own homes as an asset, and when it begins to fall in price, we begin to worry. Nevertheless, anytime we wish to invest in property, we have to look at the long-term.
On the other hand, if you own a property but do not wish to sell, you are only losing paper value. Not until you sell your home at a lower price, you have not lost anything in the meantime. It is important to note that house prices have increased significantly in the last few years. It has more than make up the fall people suffered back in 2008 during the financial crisis.
Nevertheless, over the long term, the prices will surely increase. Therefore, if you own your home for a while, it is likely that the value will increase even further to compact the potential fall in the coming months. Search ‘Fourlabs‘ to see results for floor plan sketching software.
If you are planning to sell, do not worry. All the market forecast is simply that. The future is unknown. Although if the prices fall, it can be frustrating to homeowners. Remember, some predict a price fall while others are optimistic and see the continued increase in value. At the same time, the demand for homes is still strong.