Market Brief: A positive outlook in the face of adversity.
As I sit here to write our Spring Market Update there has never, in our recent history, been a more worrying time for both health and economic reasons.
In my 35 years of estate agency we have seen the end of the ‘80s boom and the more recent recession of 2008 but none are potentially as unsettling as this pandemic.
We have had to close our offices and quickly adapt to working from home using new technologies: many of which we had in place but had not been using to their full potential.
Virtual viewings and valuations have become the norm together with video conferencing.
There is no doubt the ‘lock-down’ has placed a number of transactions in sales and lettings ‘on hold’, and we are seeing just a very small amount of activity in what we would usually expect to be one of our busiest and most buoyant times of the year.
However, on the upside, we have waiting lists of applicants wanting to view properties, continue to list new properties and are seeing completions go ahead on properties already in the ‘conveyancing pipeline’.
Work behind the scenes goes on and we remain positive with preparations in place ready to 'hit the ground running' as and when restrictions are lifted.
There has been lots of talk about a crash in the property market however, during this time we continue to talk to buyers, sellers and tenants who are extremely keen to proceed once the lock-down is lifted.
I believe that, whilst previous property crashes have been based upon overheating in the market through unsustainable lending, this stalling of the market is created by an unprecedented health pandemic.
Previously as Banks withdrew funding, buyers were unable to access finance, in this instance, there is still funding in place and Banks are in a far better position that they were back in 2007/8.
Governments across the world have acted swiftly to support businesses and individuals and it is generally felt that economies will slowly start to power back up again.
Looking forward the Bank of England base rates are at an historic low level and governments will act to stimulate the economy, in particular the housing market, as this is a driving force to other areas.
This also offers buyers the opportunity to access mortgages with low, fixed rates.
York will continue to be a sought after location to live and work and with the shortage of supply of properties simple ‘supply and demand’ economics will show that we are unlikely to have any major correction in pricing.
It is imperative we continue to follow Government guidelines, protect the NHS, applaud the dedication of the key workers and 'Stay Safe'.
I have no doubt that there will be some challenging times ahead over the next year but with a little forbearance as Captain Tom Moore says ‘Tomorrow will be a good day ’.
If you would like to have a chat about your current circumstances or are in need of some friendly advice, please do give me a call on 01904 650650 and we will do our very best to help.
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