The housing market and COVID-19

In March 2020 the world changed thanks to COVID-19. In the UK, people stayed at home, or very close to and for the next eight weeks they started to realise how important home life was to them. Also for many people, the inadequacies of their existing home prompted them to start thinking about moving to a bigger property or to a new area or just out of the City, thus kickstarting a ‘mini boom’.

As a few people started to return to work, and others remained working from home, estate agents returned to what they thought would be a quiet market. But no, for the next six months the housing market became even more active than before, and house prices increased quickly, which to this day we are still experiencing.

We listed properties and those properties sold, we took more on and they sold too and 18 months on, things have got busier and busier, despite low stock levels.

Supply and demand is always the deciding factor with house prices and in 2020, many properties were selling within a few days of coming to the market, but stock levels were not replenishing and demand quickly outweighed supply. After the second lockdown and into 2021, the frenzy of the year before went up another gear and once again demand outweighed supply and this time, the buyers with deeper pockets were prepared to throw everything they had at getting that property, even if it wasn’t perfect.

This is where the market became tricky and agents were having to deal with impatient and frustrated buyers that were having to compete against each other both positionally and financially. What this effectively means is anyone thinking of moving that did not have their house on the market were denied access to viewing and for those that were in a stronger position i.e. had nothing to sell, still had the job of competing financially with buyers that were willing to pay whatever it took to be successful and put simply, those with the deepest pockets.

This particular subject is without doubt the most topical area of the housing market right now, as the high levels of demand are far outweighing ‘supply’ thus causing wealthier buyers to submit bids up to 20% over the asking price leaving tired, frustrated and equally genuine buyers by the wayside. For agents dealing with this process, it can be frustrating and upsetting, as you realise day by day that selling properties to the most suitable buyers in the best positions is no longer the priority, as vendors will find it very difficult to reject the extremely attractive offers being made and from there it is down to good sales management by the agent in order to get it across the line.

The stamp duty holiday is now a thing of the past, but many people asked whether this would make a difference to the housing market and Westcountry Homes Online believe this will have no impact at all. The reason for this, is many buyers are making a ‘lifestyle’ change and there is little that will stop anyone wanting to build a new future for themselves and their family, especially stamp duty. Buying in the Westcountry has always been a popular relocation destination and high on many people’s agenda and as the years roll by, popularity has increased further. With an influx of new business, a growing economy, thriving holiday sector and of course the food and drink, which has now become some amongst the best in the country and around the world, it’s little wonder why people flock to the Westcountry.

So, what does the future hold for the property market, well nobody knows as we are in a marketplace driven by those that will do whatever it takes to make their future happen NOW. People have gone through a very challenging time recently, that has made us all realise what is important and that is each other, family, friends and living somewhere that allows us to work from home and this work life balance is probably long overdue.

Westcountry Homes Online recently sold their entire property register - the only agent in the region to do so and proof of just how busy this market is , so If you are thinking of selling your property, give them a call, especially with a selling fee of just 0.5% (plus vat). NO SALE, NO FEE.

By Simon Gibbons, Westcountry Homes Online

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