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How is the North East housing market after lock down?

A three month pause in the market has seen a surge in houses being listed amid lock down restrictions.

Property prices remain the same, however we expect a fall of around 3.8% in October.

Demand for the rental sector is still strong as tenants battle over properties.

It is no secret that since the lock down happened in March that the housing industry has taken a large hit. Transactions were stalled, sales fell through, low offers were being placed and uncertainty for the market was very much in the forefront of everybody’s mind. But three months later things are looking up. Many low offers have seen a Mexican stand off from sellers and purchasers, however, with every passing day we are getting back to some normality and higher offers are being accepted.

Since lockdown restrictions were lifted in May, Rightmove has seen an increase in agreed sales, with the average price agreed being 97.7% of the asking price. The average asking price for properties being listed is up by 1.9% compared to March. All of this could mean two things:

  1. Buyers are frantically trying to get more for their property before an expected downturn in prices in October.
  2. A buoyant market means demand stays strong and house prices stick.

Rightmove’s leading property expert, Miles Shipside had the following to say:

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 lock down have been worrying that their buyer may try to re-negotiate 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.

https://www.rightmove.co.uk/news/articles/property-news/rightmove-house-price-index-june

Here at Seven Keys we have been extremely busy, navigating through the demand for new properties, increased buyers, rental properties coming to market and tenants who simply wish to move. Transaction numbers are increasing daily and the biggest challenge has been ensuring that all our clients receive the level of service we strive for.

In conclusion, all the anticipated doom and gloom seems to have someone passed us all by and things are looking brighter for the future.

If you are interested in finding out more about the housing market across the North East, speak with our Property Director, Ross Parker. He is always happy to answer any of your questions and is available daily on 0191 497 1797.

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