In these unprecedented challenging times, I want to start with a couple of positives. I’ve been through many housing market challenges over the decades and whilst they each have an impact, they’re never permanent. I also have a lot of buyers eager and ready to move once restrictions are lifted.
Right Now?
Of course, some sellers have decided to remove their properties from the market whilst viewings are prohibited. There is also an element of stagnation as regards new listings. In my case at Collins Guildford, some vendors who were about to launch during the traditionally favourable Easter Holiday period have- understandably- decided to hold fire for now, but will launch as soon as restrictions are lifted.
What if I’m already on the market?
If your property is already on the market, I would leave it there. People will be looking on Rightmove to see what they can view when they’re allowed. I wouldn’t even look at reducing your price at the moment. Nothing will make a difference until viewings are possible. Properties that exchanged prior to lockdown will generally complete with some creative thinking applied from all involved. A good agent will be keeping sales already agreed ticking over and keeping in touch with all relevant parties. Once lockdown ends, exchanges and completions will start to happen again.
How will this affect the market in the near future?
Supply and demand …. There will be a lag in supply during this period, but the big question will be how will demand look? Younger first-time buyers will have a different outlook to a family moving upmarket for example. I anticipate demand to be generally cautious initially, but as trading resumes and people see transactions happening, buyers will return. I actually believe that after lockdown, there will be a golden period of confidence and optimism which will prompt activity in the immediate period after restrictions lift. The keys of course will be: confidence in employment, the economy and borrowing.
