Posted on May 05, 2020 at 11:00 AM
In these very strange times, I don’t think anyone could have imagined us being in this scenario that we currently find ourselves in. With most people being concerned about family, friends, health and jobs, everything seems to have ground to a halt. The Estate Agency industry is no exception and with restrictions currently in place, we cannot go out and carry out any day to day viewing or valuation appointments. But people are starting to ask how will Coronavirus affect the market and prices in the longer term.
A lot of 2019 was spent with people holding off, because of the implications of Brexit. However, the turn of the year saw a lot of activity return to the market place with lots of new instructions and sales. Y Homes had one of its best months ever in February 2020 in the 12 years that we have been trading. Most other agents reported similar, and momentum seemed to have developed. So with Coronavirus now affecting the whole economy, a good number of people will be wondering what they should do if they are looking to buy or sell a property in the next few months.
Obviously with the virus currently sweeping the world and agents effectively not being able to trade as we would on a normal day to day basis, then we cannot really assess the full impact of this at this time and the next few weeks and months will certainly be very much the litmus test. The initial thought process is that in the short-term there could be fewer properties being available, either because sellers have had to withdraw due to self-isolation or that they are uncertain whether right now is the best time to sell. There will still however be properties that will have to come to the market due to job relocations, job losses, separations and sadly deaths.
Before the lockdown, YHomes had a number of new properties that were due to come to the market, where sellers have decided to hold back marketing until things return to some form of normality. We have also had a number of new sellers who also want to instruct us to take things forward and place their property for sale once restrictions are lifted. Adding to this, we have also had a good number of viewing requests for current registered properties as soon as we can set these in place again. So it is not all doom and gloom. A marketplace certainly seems like it could be there, once restrictions lift.
Various property market analysts are trying to assess where the market might go with suggestions of a recession and potential price drops of 5-10%. We take a slightly more reserved view, based on the fantastic city of York that we live in and also the high demand that was shown in January and February. There might need to be a slight correction in prices during Q2 and Q3 this year, but nothing like the percentages quoted. We feel that the market in Q4 could really bounce back, especially if lending costs remain low and mortgage products remain strong. Of course, this is early days and this is all speculation.
So in the short term our advice is to keep calm and carry on. Once lockdown is lifted, it could take a couple of months for the market to return to some form of normality and I am sure we will see some opportunists trying to take advantage of the situation. This will be not the time for knee jerk reactions or accepting silly offers.
YHomes are available for property advice via telephone on 01904 707181, email email@example.com or through our website www.yhomes.co.uk
Please do not hesitate to contact us for any help or advice at this time.
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