Since the Government lifted the pause on the housing market, there has been a steady spike in demand for housing. New sales have risen by 137% since the market was given a green light from the Government to reopen, returning to the levels it were prior to Lockdown in March.
Moreover, the average asking price of sales agreed in the last week have risen 6% higher than last year. Sales are higher across all price bands nationally but demand for housing has increased at a higher rate for higher value homes.
Research suggests that housing is now 54% higher than at the start of March. This indicates that there has been a major boost of interest in the housing post the restrictions in the housing market were lifted. However, some believe that this spike will be momentary and have a short-term effect.
The rebound in housing demand over the last month is not only based on pending deals and interest from past buyers. The pandemic has brought a whole new group of would-be buyers and investors into the housing market.
This activity has increased immensely across all pricing levels, However, analysis shows that the higher the value of a home, the greater the increase interest has been.
New sales in London have decreased massively, as buyers a showing an interest in investing in different regions.
Due to higher asking prices for newly agreed sales, suggests the the housing prices will not show an immediate fall. The lower asking prices for homes sold over the lockdown period will drag down the indices for housing prices during May. However, new analysis shows that house price growth is set to remain grow and be positive in the next two months.
Unfortunately, this major spike may soon drop as the financial impact of the Pandemic will begin to feed in. Analysts believe that if a fall in the housing market returns then levels equivalent to how they were before lockdown, will only be the same in 2022.
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