Mon, 2021-05-10 11:07
Back in May 2020 when we returned to work after the first lockdown, we could never have imagined in our wildest dreams that the property market would have performed the way it has over the last 12 months. It was very evident in the first few weeks post lockdown last year that activity levels were on the increase and the appetite to move was gaining momentum week by week. It is interesting to hear the thoughts from our customers, as much of the thinking behind the activity levels is related to the stamp duty holiday. However, whilst it is fair to say that last year this triggered a spike in the market, there are, we believe, other factors that have attributed to the current market conditions more than this.
Firstly, the simple desire for a change of lifestyle and the emphasis by many on securing a larger home for the family to enjoy and more space to work from home. Secondly, we were overdue a property boom. We have not seen activity levels like this since the market in 2006 and 2014, perhaps caused also by what we feel is the third factor. From 2016 to 2020, in what many will remember as the Brexit years, we perhaps underestimated how suppressed some consumers appetite was to embark on major events such as moving home. So, in essence with the four factors above, it has created the perfect storm for the housing market, not least of which is also being fuelled by the desire to spend money many people have saved over the last 12 months, investing much of it in their homes by either moving or extending and renovating, whilst also taking advantage of very low mortgage rates.
Our conservative estimate now is that we have seen a 10% increase in values year on year and no signs at all that this is letting up. Most properties going to the market are attracting a very high level of interest, securing on average over 20 viewings within 24 hours of being listed, resulting in several offers being received and eventual sale prices being secured on many occasions above the quoted asking price.
We are already being asked the question, how long will it last? In truth, it is very difficult to predict, as has much of what has gone on in our lives over the last 12 months. The history books will show that prices cannot continue to rise forever and there is no question that at some point later this year we may well see them peak and plateau but, in our opinion, not fall underlining the fact that long-term, investing in property always proves to be a winner.
Coinciding with the activity in the market we are delighted that our market share at Sparks Ellison has continued to rise, with April’s data from Rightmove.co.uk showing us having agreed 54% of all sales in Chandlers Ford, amongst the agents trading from premises here. Our team have worked tirelessly through difficult conditions over the last 12 months and it is testament to their loyalty, commitment, and hard work together with the trust in which customers place in us that drives consumer confidence in making Sparks Ellison the agent of choice.