In recent weeks, I’ve spoken about the run up to the end of the year and how, seasonally, we usually see a downturn in market activity. This week, our analysts here have taken a more detailed look into the current market since the beginning of October through to now. They have come to the conclusion that 75% of the fall in New Instructions is down to seasonal factors, which means that Lockdown 2 isn’t having a massive impact on the supply of new properties for sale.
In terms of sales being agreed, 60% of the decline in sales is down to the time of year, whereas 40% is due to other factors (i.e. COVID 19 and Lockdown 2). They therefore concluded that Lockdown 2 is having more impact on demand rather than supply.
Take a look at the graphs below showing the 7 day moving average of New Instructions coming to the market and then Sales being agreed each day:
The good news from these graphs is that both property coming to the market and sales agreed are still a lot higher than they were in the same period of 2019. We’re looking at around 44% more sales being agreed and 18% more new instructions.