How will COVID-19 affect selling your home and house prices in general?
In all honesty it’s too early to tell for sure, however what we do know is the market has effectively stopped for 2-3 months in 2020. Generally this would cause a drop in house prices as people that “need to sell” drop their expectations of the price they will achieve and lower their price.
This has happened to an extent but the pent up demand in the market added to the stimulus pumped into the economy by the Government has caused an almost “stalemate” and prices seem to be holding up for the time being anyway.
As of writing this (3rd June 2020) the lockdown is gradually easing and we are starting to get back to some sort of “normal” as is the property market.
Over the longer term we expect the economy to suffer and head into a recession and also expect house prices to fall.
It’s not clear when this will happen, there is a lot of added complexity, companies that would of gone out of business have been helped with grants etc in the short term. Over the longer term a lot of these will fail. Today news has broken of Chester Zoo’s struggles, this is only the very tip of the Iceberg – the leisure industry is going to be very heavily hit by this pandemic.
Consumer trends have been changed possibly for ever, we may not go back to making purchasing decisions as we did, a lot of people have realised they don’t need to spend so much on going out, or on holidays, or on a flash car that they can’t drive.
This is going to play out over the next year or so and the economy is going to head into recession at some point.
The affect this will have on property prices is likely to be negative as banks restrict their lending and the buyers decide to “wait it out” this all compounds and adds to the negative pressure on house prices.
If you need to sell your home now might be the best time to put it on the market before the problems caused by COVID-19 have really taken affect. There’s a good chance if you price it realistically that you will get a sale over the next few months – we are in the spring market and that is always the best time to sell, this year is no different and it might just be a bumper year for sales before the problems start to creep in.
In order to get the best price for your property check out our guide How To Get A Fast House Sale
If you just want a Fast Sale Offer price for your home, then contact us today and see how we can help you.