Why has the local property market been so active since lockdown?
With an explosion of activity over the last few weeks we explore our buyers reasons for moving in the current environment.
During lockdown we, like many of our clients did not know what would happen as the government eased the restrictions and allowed the property industry to return to some kind of normal.
We are pleased to report that early signs would suggest that the local home movers have already begun to comit to purchase and rent many of the properties we currently have available. We have been genuinely overwhelmed with enquiries from buyers and tenants as well as a wave of requests for valuations. Giving this activity, I decided to try and understand our current buyers and tenants motivations and reasons for moving during this period.
Looking at the number of visits to our properties on OnTheMarket.com and other property portals it quickly became clear that we used our time in isolation to do thorough research into our potential new homes and investments. Numbers of views of our properties surged as our potential future Landlords, Sellers, Buyers and Tenants began to engage with the market once again.
It would appear that for Buyers there are a number of motivating factors. Those looking for an investment property genuinely believe that now could be a fantastic time to buy as we find ourselves in a relative trough where there is often better value to be gained from motivated sellers.
A number of our current new buyers are convinced that life post Covid-19 will undoubtedly change with a considerable number looking at options in terms of properties which could accommodate an increased number of hours working from home and avoiding the commute.
There seems to be a distinct number of buyers and tenants that have suffered from Coronavirus Cabin Fever and are looking to upsize with their next moves. The sheer pressure of being at home with the family for such a long period seems to have convinced them it is time for change and more space IS required! Again, many of these applicants stand to benefit from reduced prices as the price gap between the smaller home being sold will be in monetary terms closer to the purchase price of their next larger home.
There is also some evidence of applicants moving out of more densely populated cities and moving to properties where social distancing may be more easy to maintain. Did you know according to Wikipedia the population density in Islington, London is 16,097 per sq km whereas in Chelmsford the density is quoted as 523 per sq km.
Following on from three years of Brexit uncertainty followed up by the 2020 Coronavirus Lockdown there is a distinct number of home movers who seem to share the feeling that putting the move on hold has gone on long enough. In my opinion, as soon as the press publish the effects of the current increase in activity there will be a surge in demand which could well cause a further property shortage leading to another price increase.
We all wish we had a crystal ball but signs are positive that confidence is returning.
If you would like to discuss this further or would like an appraisal of your current property Church & Hawes would be delighted to assist.