Rightmove’s latest house price index for June has found that asking prices have increased in England by 1.9% on average. This is compared to pre-lockdown levels indicating the market is ploughing forward despite the recent pause on activity due to the coronavirus outbreak. The number of new sales agreed has also shown a swift recovery now being only 3% lower than this time last year! This is a bounce back from 97% drop due to lockdown restrictions. The pent-up demand has certainly made its mark on the market getting the property market moving once more.
Those that were anticipating a price dip upon the release of the property market from lockdown have been proved wrong, with homes coming to the market at an additional average of £6,266. Buyers are paying 97.7% of asking prices on average; further showing that people are keen to make up for lost time and purchase their new home.
Miles Shipside, Rightmove director and housing market analyst, commented: 'Following the initial shock of the early reopening of the housing market, England is getting moving again with a boom in traffic on Rightmove. There are no signs of panic selling or even a price dip. Some sellers who had agreed a sale before lockdown have been worrying that their buyer may try to renegotiate with a reduced offer.'
'On this evidence, buyers may now be trying to exchange quickly, as there are signs of high pent-up demand and upwards price pressure, rather than downwards. Lenders may also have been concerned about price instability affecting the risk profile of their low-deposit mortgages, so hopefully this will give them more confidence to increase their range of first-time-buyer products.'
The pause in the sector during Spring halted 175,000 people from bringing their home to market. They have not been deterred as record numbers of new sellers have requested valuations, and new listings are at a higher level than last year. The coronavirus pandemic has caused many to reconsider their lifestyles and push on with property decisions they had previously been hesitant about.
