An Update On The Current Housing Market: The Buoyancy Continues
Firstly, the Nationwide House Price Index April 2021 has revealed record highs in the housing market. Here are the key figures taken from the report:
* Annual house price growth rebounded to 7.1% in April, from 5.7% in March
* Prices up 2.1% month-on-month, the biggest monthly rise since February 2004
* Annual growth will reach double digits in June if prices are flat over next two months
* New record high average price of £238,831, up £15,916 over the past 12 months
Figures from the Halifax House Price Index similarly echo a buoyant market:
* House prices were 8.2% higher than in April 2020
* UK seasonally adjusted residential transactions in March 2021 were 190,980 – up by 32.2%
from February (up 49.6% on a non-seasonally adjusted basis).
* The latest quarterly transactions January-March 2021 were approximately 31.2% higher
than the preceding three months October-December 2020.
Russell Galley Managing Director of Halifax has said “The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the Government scheme.”
Buoyant market set to continue…
“The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.”
Yet Robert Gardner Nationwide’s Chief Economist has said that “Further ahead, the outlook for the market is far more uncertain. If unemployment rises sharply towards the end of the year as most analysts expect, there is scope for activity to slow, perhaps sharply.”
“However, shifts in housing preferences may continue to support activity, even if labour market conditions weaken. Indeed, at the end of April, 25% of homeowners surveyed said they were either in the process of moving or considering a move as a result of the pandemic…Given that only around 5% of the housing stock typically changes hands in a given year, it only requires a relatively small proportion of people to follow through on this to have a material impact.”
Buyer demand shows ‘no signs of abating’…
In fact, an article published yesterday (May 25th) reports that ‘Reallymoving’ forecast a significant increase in residential property prices as demand from buyers continues to heavily outweigh supply.
Reallymoving captures the purchase price buyers have agreed to pay when they search for conveyancing quotes through the comparison site. They use this to provide a three-month house price forecast that has historically been accurate.
The comparison site predicts the UK housing market will remain buoyant with prices set to increase by an average of 2.9% in June and 3.7%, when compared with the corresponding period last year.
CEO of Reallymoving Rob Houghton says “Backed by lockdown savings and encouraged by rock bottom interest rates, many people are determined to secure a home that meets their new needs, despite fierce competition – and it is these movers who are driving sharp increases in average prices. Despite this, first-time buyers continue to maintain a market share of around 55% – which could rise further now the government-backed 95% loans are available.”
Here at Tempo we are experiencing a high number of speedy sales and have a long list of buyers eagerly awaiting to purchase properties in Freckleton, Warton, Kirkham, Lytham and the surrounding areas. Now really is a brilliant time to go on the market with Team Tempo.
Here at Tempo we make selling your property EASY & AFFORDABLE