May Market Report: New buyers entering the market
Despite restrictions on property transactions during lockdown, we are receiving an ever increasing number of enquiries from buyers ready to get moving and our team has kept working throughout this abnormal time, to progress our clients’ transactions as far as possible.
Adapting to what has become the “new norm” for property valuations and viewings to take place virtually has allowed us to achieve some great results for our clients – whether that be accepting an exceptional offer on their current home or securing their next one.
Whilst some aspects as to the way we conduct business have changed for the foreseeable and perhaps forever our core values at Deans Properties have not – tailored personal advice which starts with carefully listening to clients objectives.
High Demand in the Scottish Market
Since easing of restrictions have been introduced in England, allowing the property market to reopen, it has been noted there has been an increase in buyer activity as high levels of pent-up demand is released into the market. Rightmove reported Wednesday 27th May to be their busiest ever day with over 6 million visits, 18% higher than the same Wednesday of 2019. They also noted 28% of people who were not planning to move before lockdown are now entering the market.
Similarly, Zoopla noted buyer demand to be 54% stronger than it was before the property market froze. They also reported sales increased 137% since the market reopened and feel this rise can’t be solely explained by pent-up demand, instead that COVID has brought a whole new group of buyers to the market.
Lockdown restrictions might still in place in Scotland but that hasn’t stopped buyers making enquiries. We have seen a huge flurry of interest from buyers and this interest has resulted in successful closing dates for properties with some exceptional offers being received. We also have many sellers keen to get on the market when it is safe to do so.
We have adapted and developed innovative ways to ensure we are able to help buyers and sellers. We can offer virtual valuations via video call which allow a seller to take our Valuer round their property as they would in a traditional valuation appointment allowing them to give a clear indication of the price it could achieve on the open market.
For our on market clients, we are helping to accommodate virtual viewings allowing buyers to view properties via video call or video tour. This has proved hugely successful and in many cases has resulted in offers being received.
Virtual viewings and valuations have proved vital in recent weeks and we plan to continue to offer these going forward.
For those looking to buy, our Solicitors are on hand to give you tailored advice for your personal situation to help devise the right strategy to secure a property.
Why is there so much demand to move?
Many factors influence buyers (and sellers) wanting to move now.
Sellers who had held off selling due to Brexit, many of whom planned to wait for the famously favourable Spring Market to launch their property, have been further delayed in their plans due to COVID19, meaning those who had hoped to be on the market and sold by now are still waiting to do so.
Buyers are benefiting from low mortgage rates with lenders offering high Loan-To-Value rates (some up to 95%) meaning buyers can borrow easily for their next move. Many buyers are taking advantage of these great rates and are being able to secure a property.
Lockdown has been a difficult time for many and spending an extended amount of time at home has made many home owners realise their current home just doesn’t meet their needs. Whether they need more space, multi-generational living, a home office or a private garden area. This period has, to some extent, given us all the chance to look ahead as to the life we hope to live in the years to come and the home that we want to be part of that vision.
We have an ever-growing buyers’ database so if you would like to be notified of new properties, before the general public, that suit your current requirements, get in touch today with your dream home “must haves”.
Prices are stable or even strong at present
There has been a lot of coverage in the media surrounding house prices with rumours that the pandemic will cause dramatic drops in house prices.
Latest figures released in Halifax’s house price index reported house prices were only 0.5% lower in the latest quarter (March-May) than the 3 months prior. However, they also noted house prices were 2.6% higher in May than May 2019.
More locally, in Edinburgh, the Lothians and Fife, the ESPC has recorded that in April and May the number of properties achieving or exceeding their Home Report Valuations was up. April saw a 2.2% increase from 78.9% to 81.1% and May a 2% increase from 78.5% to 80.5%.
A Sellers’ market
The Government has suggested the property market in Scotland can begin to reopen when we enter phase 2 which is due to be reviewed on 18th June. It is anticipated we will see an initial bounce in the market as demand outstrips supply which should result in prices remaining high as buyers compete for the properties that are available.
If you are thinking of selling, our advice is to make the most of the high demand from buyers.
We offer a fair, FIXED fee for both buying and selling, making it easier for you to budget for your next move.
Get Moving Now! To arrange a free virtual valuation to find out how much your home is worth, and discuss how to make sure your property is one of the first to market or to speak to a Solicitor about buying your next home call 0131 667 1900 or email mail@deansproperties.co.uk