Housing market data representing stats during Covid 19 are so far scant. Yes, it feels like we’ve been subjected to lockdown for years but at not quite three months of oddness, in reality it’s not given much time to evaluate the market especially when transaction levels are so much lower because of the restrictions that we all face.
Today though, Rightmove have published their House Price Index for June and which takes as its snapshot the days between 10th May and 6th June. Importantly, the latter days of this period are subsequent to the guidance on home selling changing to allow the market to re-open. Therefore the data that Rightmove have published today is not only up to date and with little or no lag unlike, say, the HM Land Registry numbers which reflect market conditions from months back – but it’s the first set that tells us what the UK housing market is doing since the depths of the strictest restrictions were lifted.
And the upshot is this, the numbers are good. In fact they are better than good:
- Average asking prices are UP 1.9% since March
- Since the market re-opened on 13th May some 40,000 sales were agreed between to the 6th June
- Daily new listings numbers are now higher than they were this time last year
- The number of people calling and emailing estate agents has hit new records and 40% above that of March
- Here’s the most important number as far as price buoyancy is concerned: Properties are selling for an average of 97.7% of asking price – UP from 96.6% in February
The property market is back. And it’s back even stronger than it was before Covid hit.
“I maintain the view that I have held from the beginning of this crisis and which is that UK property prices will not drop in the medium to long term and this is based on market fundamentals being strong, coupled with pent up demand not just from the frustration of lockdown but also stemming back many months to the dark days of the No Deal Brexit ‘threat’ too”, says our resident property expert Russell Quirk.
Demand is strong and strong demand leads to higher prices.
“I hate to say I told you so however it seems that my well documented optimism in the face of many gloomy property commentators is proving justified today”, he adds.
See the full Rightmove report here https://www.rightmove.co.uk/news/house-price-index/