No holiday for the housing market!
The rulebook has been rewritten as the post-lockdown mini-boom accelerates rather than slows down. There is normally a seasonal slowdown in housing market activity over the summer months, as both buyers and sellers turn their attention to summer holidays. But this year home movers have put more property on the market and have agreed more sales than in any month for over ten years, worth a record total of over £37 billion.
This is leading to monthly price increases in ten out of twelve regions, with a record high in new seller asking prices in seven of those regions. Prices usually fall at this time of year, as sellers try to tempt holiday distracted buyers, with the national average monthly fall for the last ten years being 1.2%.
Miles Shipside, Rightmove’s housing market analyst commented this week:“There have been many changes as a result of the unprecedented pandemic, and these include a rewriting of the previously predictable seasonal rulebook for housing market activity and prices. Home movers are both marketing and buying more property than we have recorded in any previous month for over ten years, helping push prices to their highest ever level in seven regions.”
He continued, “Rather than just a release of existing pent-up demand due to the suspension of the housing market during lockdown, there’s an added layer of additional demand due to people’s changed housing priorities after the experience of lockdown. This is also keeping up the momentum of the unexpected mini-boom, which is now going longer and faster. We associate this time of year with diving into the pool rather than the property market, and of sand and sun rather than bricks and mortar, but buyers have had a record £37 billion monthly spending spree.”
Rightmove’s report also reported that the out-of-city exodus has helped push prices to record levels in holiday destinations like Devon and Cornwall, where working from home means a different lifestyle virtually on your doorstep.
Activity at Wilsons cannot as yet indicate prices in the Taunton area are rising but in contrast to a fall predicted earlier this year, they are certainly holding firm, with full asking prices being paid in many cases.