September Market Comment

Added on 14 September 2020

We’re not surprised that house prices, according to the Halifax, rose 1.6% last month. That’s nearly 20% per annum when annualised (but don’t do that)! The combination of at least three months of pent-up demand, coupled with stalling supply as people hunkered down during lockdown made such an increase inevitable, especially when compounded by the government’s SDLT giveaway.

Most people will accept that such growth, as a result of these unique circumstances, is unsustainable.  Whilst there is some evidence of early economic recovery (the economy grew by 6.6% in July), the medium- to long-term impact of the pandemic is a concern, especially as the furlough scheme comes to an end, with inevitable increases in unemployment. And there is even word on the street of a possible “hard” Brexit once again.

However, political uncertainty and continual changes to property-related tax regulations have kept house prices in check for the past few years, giving a potentially overheated market some breathing space - so there has been some scope for prices to rise. Additionally, continued historically low interest rates are unlikely to exert the type of pressures that prompted forced selling during the financial crisis of 2008/9.

So our advice to sellers is as it was last month – make hay while the sun shines! With buyer demand currently running 34% higher than a year ago, this is no time to be “thinking” about a move. Christmas will be on us before we know it and those who take action now will certainly benefit – having taken advantage of this unique set of circumstances.

Yes, we’re extremely busy, but we need more stock to sell as we are selling properties so fast. So please call us now on 03330 430090, we would be delighted to help you.

Peter Ryder

Managing Director

Thorntons Property

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