With the Government re-opening the housing market, there has been increased demand and movement in the market. While many people will hold off until there is more clarity in the market, it should come as no surprise that some people want to move as soon as possible.
Some key figures stated by Rightmove since the market re-opened included:
- On the day the property market re-opened, there was a 111% week-on-week increase in new sales listings
- The number of unique enquiry demand from the day before the market to the day the market opened doubled, and was just 10% less than the same day in 2019
Rightmove property expert, Miles Shipside, said; “Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks. With no new seller asking price data it’s too early to comment on price movements, though high demand is needed to support a stable market.”
Mortgage products are essential for growth in the market
There is no denying that more mortgage products will assist the market, and Miles continued by saying; “If there are attractive lower deposit mortgages available it would help sustain the recovery in activity. The industry has been caught by surprise, as we were all expecting the housing market to stay closed until at least June.”
There is no denying how people have experienced the lockdown process will impact the housing market, and what people want from a home. Miles said; “High demand could lead to a boost in values for properties that offer inspiring home-working options. But on the other hand, the extra value for a property being close to a popular commuter route may diminish if working from home becomes the new norm.”
Choice is crucial in the housing market
As highlighted by Rightmove, the presence of mortgage products is crucial for the market, and these have been rising. A study by technology provider Mortgage Brain indicates mortgage products are increasing week by week. At the end of April, figures indicated there was a rise of 5.9% in the number of mortgage products available in the market. At this time, there were 8,044 products on the market. This represents a rise of 488 on the previous week, and the second week in a row that mortgage products had risen in number.
Kevin Dunn is a Director at Furnley House, and he said; “Last week we thankfully saw the return to the market of some higher loan to value deals from some of the bigger lenders. Hopefully this will have a ripple effect to give other lenders the confidence to return more products to the market too. A higher increase in remortgage products makes sense, as often these are easier to complete without having to have a physical valuation. There are definitely some green shoots to suggest the market is slowly coming back.”
Anyone who is considering buying a home or who is looking for guidance on mortgage matters should be aware the market is operating, and help is available. Each person and household have their priorities at this current time. For some parties, the present circumstances will only reinforce their need and desire to step onto the property ladder.
