last week, we saw growth again in the number of properties coming to the market for sale. We saw a slight decline in the number of sales that had been agreed. With the rental market like the sales market, there was again small growth in the number of properties becoming available to let and a very small reduction in the number of lets being agreed. See below:
We’re currently in the midst of a Demand Vs Supply issue. March 2021 was the busiest single month of Sales Agreed for over 10 years. We can’t compare the numbers to this time last year anymore (due to the obvious reasons, which I’m not going to name because I’m sick of talking about it really, but I’m sure we all know about!).
However, when we look at the Easter supply and demand when compared to the Easter month of 2019, we can see that Sales Agreed is up 56% on 2019 and New Instructions are also up, but only by 7% on 2019. So, with more demand in the market (buyers) than supply (sellers), the most likely outcome is that in this “seller’s market” we’ll see property prices rising in the short term.
Good news to go alongside this is that with the new Government backed 95% mortgage guarantee scheme, we should keep the levels of First Time Buyers buying at the bottom of chains. Without the FTB’s you’re likely to lose buyers further up the chain (as they find it harder to sell their homes) and the whole market would stagnate, which we don’t want to see.