Will the Housing Market crash?

Posted on 15 May 2020

Due to all the uncertainty with the Coronavirus, people have not known what to expect of the Housing Market. Viewings were banned in Late March, since then the Housing market came into freeze. Fortunately, the Housing Market has made a kickstart as now the Government has said that social distance viewings and moves can restart.

At the movement, it is predicted that Housing Market prices will fall by 13%. Unfortunately, there may be serious declines in some areas in the Uk, as the property market will struggle to rebuild itself back up, due to the people which may be left in financial difficulties as a result of the pandemic. Analysis suggests that prices have already fallen by 5% since the beginning of lockdown, and will not recuperate fully until 2022, as the fall in prices may be sustained for the next few months.

On the other hand, experts also suggest that rise may be seen in the next two months, as people will be slowly returning to their jobs and to normality. During the seven-week freeze that the housing market faced, 373,00 sales were suspended. However, these are now able to resume and non-essential house moves and viewings are permitted. Nevertheless, the Government has said that the housing market will be dependant on how well-controlled the outbreak stays.

An interesting view is that the type of housing buyers will likely be looking for a change after lockdown. As a result of lockdown, many buyers will be expected to have changed their location choices; many buyers are expected to choose houses in more rural areas instead of Urban surroundings or the city.

Buyers are hesitant on buying a property as the falling of the housing market brigs risks of getting into negative equity, and people are likely to wait a while before making this commitment. However, if you are buying with the intention for a long-term view, it is a good time to negotiate lower prices.

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