Published: 23/03/2021 By ARMaking a move in the housing market depends on many things, but timing is always crucial. Sometimes, other people's actions impact your ability to move, which is evident when selling your home.
If there are no buyers in the market, it becomes difficult for homeowners to sell their home. Of course, this isn’t the current situation across the country. Right now, the demand for homes outstrips the supply of property to the market.
In new information provided by Rightmove, the demand level compared to supply is higher than it has been in the past ten years. The gap is 34% higher in March 2021 than it was in March 2020.
The greater level of demand has also pushed property prices up. The average price of property coming to the market across the country in March 2021 has risen by £2,484.
Sales are taking place in the property market
The property portal analysis suggests that the number of homeowners listing their property for sale is creeping up. This outcome is just as well, as, for two out of three properties currently listed on agent’s books, deals have been agreed.
With spring being the traditionally busy time in the UK housing market, Rightmove believes that April will be a busy month in the housing market. The company believes the current demand oversupply is the biggest they have witnessed in the past decade, which creates an opportunity for homeowners to sell their home.
Tim Bannister, Rightmove’s Director of Property Data comments: “Concerns of a cliff edge for the housing market at the end of March have dissipated, partly due to the tax deadline extensions in all of the UK bar Scotland, but also because the already high level of buyer demand caused by the lockdowns has continued to surge since the start of the year.”
Tim Bannister continued by saying; “This demand will be further boosted from April by the new Government guarantees enabling lenders to bring back 5% deposit mortgages. Whilst it is unfortunately not the perfect time to buy for some people who have been adversely affected by the pandemic, the record buyer demand measured by Rightmove indicates that now is the right time for many.”
External factors drive property market behaviour
There are external factors that shape the housing market, as there always is. With interest rates being at a record low level, this has inspired many households to move. Also, we cannot underestimate the impact of lockdown and how people feel about their homes.
The past year has been challenging, and the importance of space at home cannot be overlooked or dismissed. Buyer demand has shifted, with space and freedom being more crucial than ever.
Tim Bannister also said; “Blossoming buyer demand coinciding with blossoming gardens should put a spring in the steps of sellers, and more of them coming to market will provide a much-needed increase in the choice of property for the many who are looking to buy.”
Bannister concluded by saying; “So many sales have been agreed in recent months that we now face a serious shortage of homes available for sale. There are lots of reasons why many home-owners have hesitated to come to market during the first two months of the year, but these do now seem to be dissipating. A recovery in fresh supply gives more choice to prospective buyers, many of whom are also potential sellers, which in turn encourages more of them to come to market.”
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