Property market bouncing back quicker from COVID than following 2008 Financial Crisis
- 3rd September 2020
- Selling Property News
Housing market suffered “short sharp shock” unlike prolonged drop after credit crunch
The property market is recovering from coronavirus faster than it did following the 2008 Financial Crisis shows a study by TwentyCi, the property data group. The impact of coronavirus has been described as a ‘short sharp shock’, as lockdown put a halt to all transactions and viewings from late March to mid-June.
Since the market has reopened, high levels of transactions have boosted asking prices by 7.7% between Q1 and Q2, with no indication that this is set to change in Q3. The volume of new properties entering the market has remained high, suggesting sellers are confident of getting a good price for their property.
By contrast, the property market was particularly exposed during the 2008 Financial Crisis, which prompted house prices to crash 16.2%, the largest drop in a calendar year on record. Land Registry Data shows that the number of transactions in Q3 2008 were less than half of what they were the previous year and did not start picking up until interest rates dropped in Q3 2009.
Stephen Ludlow, Chairman of ludlowthompson says: “Low interest rates combined with the Stamp Duty holiday have incentivised prospective buyers by making purchases more affordable.”
“The fact that the level of enquiries and transactions have remained consistently high following the reopening of the market suggests the property market is one of the better performing areas of the UK economy.”
ludlowthompson’s Lettings and Sales agents are continuing to offer prospective renters and buyers guided video tours of properties. In person viewing appointments complying with social distancing, are available following virtual viewings.
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Low interest rates combined with the Stamp Duty holiday have incentivised prospective buyers by making purchases more affordable.
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