Well in volume terms, it just has.

This is to state that in the last week, property coming to the market and sales agreed are both above 2019 norms.

We reported in client briefing issue 20 that “all of our indicators are suggesting that the market is bouncing back with a rate and pace which belies the fact that a large section of the economy is still locked down”. And we are pleased to report that a week later, we see the market return to 2019 norms.

Property Coming to the Market (New Instructions)

The number of properties coming to the market by week since February 2020 and a comparison with 2019 weekly norms is shown in the chart below…

We can see that throughout February and in the first two weeks of March 2020, the market was operating at higher levels than 2019. Then from the week prior to lockdown in March, we see a rapid decline in these numbers to a low point in w/c 13th April. Since the property market was allowed to re-open on 13th May 2020, we have seen a sharp rise in New Instructions over a three week period to take us back above 2019 levels.

Sales Agreed

The number of properties with Sales Agreed by week since February 2020 and a comparison with 2019 weekly norms is shown in the chart below …

The pattern of Sales Agreed volumes is very similar to New Instructions coming to the market. We can see that throughout February and in the first two weeks of March 2020, the market was operating at higher levels than 2019 – this is the so called “Boris Bounce”.

Then from the week prior to lockdown in March, we see a rapid decline in these numbers to a low point in w/c 13th April. Since the property market was allowed to re-open on 13th May 2020, we have seen a sharp rise in New Instructions over a three-week period to take us back above 2019 levels.

In summary, as we have continually reported, this is encouraging news indeed, we are already back at 2019 norms.

The question remains as to whether this surge in demand and supply is purely a reflection of the pent-up demand that developed during lockdown or will we see volumes above 2019 norms continue for some time.

Our view, if we were pushed to give one, is that the market is back and here to stay, and the question should be rephrased to “will it be as strong as it was pre-Covid-19?”

Once again, We will of course continue to keep an eye on this for you in the coming weeks and months.

Source: TwentyCi