How is the housing market thriving when the rest of the economy is suffering?
Sales are up, prices are rising and mortgage applications are at a record high.
Our Sales Team are registering house-hunters in their droves at the moment, but how long will it last?
When Wales' first lockdown was announced in early 2020, house viewings were banned and many pending sales transactions were stopped in their tracks. As a result, the property market slumped during the second quarter of the year.
Since then, with restrictions now eased, there has been an irrefutable boom in both sales and lettings markets, felt up and down the country. In fact, many would-be buyers have reported the same story to us: "I keep getting beaten to the properties I like because there's such a backlog of demand".
As other sectors struggle to make ends meet and claw back a loss in revenue, the housing market – propped up by Stamp Duty/Land Transaction Tax holidays and the lowest interest rates ever recorded – appears to have gone from strength to strength.
But with the winter now upon us and lockdowns back on the agenda, uncertainty looms once more, so is it inevitable that we're going to see a downturn?
'Record' Cardiff sales post-lockdown
"During the late June to end of September 2020 period, there was an explosion of activity," reports Nathan Walker, CPS Homes' Sales Director.
"Compared to the same period in 2019, the number of sales we agreed were up by an incredible 45%. Lockdown convinced people that they need a garden, or that their current one wasn't big enough – especially families, who were the biggest movers.
"I've never known demand quite like it," Nathan continued.
There have been many ‘stormy days to come' predictions, but Nathan's quick to point to Cardiff's historic bouncebackability.
"In 2008, the crash in Cardiff was significant and undeniably detrimental to house prices here, but they bounced back quickly and were on the rise again within 12 months."
What's happening now?
Rightmove's house price index for October found that Wales had a healthy monthly increase. Asking prices were up 0.6% on the previous month and 7% on the previous year.
The average asking price in Wales was £213,721. However, the latest Land Registry figures tell us that the average sold price in Cardiff was more; £217,194.
Nationally, asking prices were 5.5% higher than they were a year ago, which was said to be a four-year high.
What will happen next?
There is still uncertainty about the future of house prices and the demand for property, with so many question marks over how the pandemic will progress.
When the Government's furlough scheme was due to end in October, many property experts suggested that there could be a decline in sales as a result of decreased income, but the welcomed news of an extension to March 2021 has given everyone more confidence, so we're hopeful that the sales market will continue to thrive.
If you're keen to sell your home, or even if you're wondering what it's worth in the current market, contact Nathan today on 02920 454555 or nathan.walker@cpshomes.co.uk.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
