Disclaimer: This article is for those curious about how the coronavirus situation will play out within the property market.
We understand that house prices are seemingly an unimportant issue in light of an ongoing global pandemic. However, it is ultimately our job here at Residential People to provide our users with insight into the property market.
Our prayers go out to those suffering. Wash your hands and stay at home.
In light of the ongoing Coronavirus pandemic there has been a lot of questions thrown around in the property market, with people asking ‘should you buy now or hold off?‘
The buying market has declined rapidly in recent weeks due to socially distancing, which has all but cancelled or postponed property viewings and the signing of documents.
Hansen Lu from Capital Economic who previously worked as UK Treasury Select Committee, predicts a staggering 40% fall in transactions and mortgage approvals.
Mr Lu also expects the majority of the sellers at first will not accept price cuts and will be stern on their asking price.
Should you buy a house right now?
Unfortunately, nobody knows the definitive answer to this golden question.
While it is far from certain, those buying now shouldn’t be surprised to see the value of their property falling by the end of the year as a consequence of the economic damage caused by the Coronavirus.
Chris Sykes of Private Finance, however, believes now is the best time for first-time buyers due to the low-interest rate – something that will help those who want to borrow 90-95% of the total property value.
Mr Sykes states: “First-time buyers may also be able to ask for discounts from developers if they are struggling to sell their properties,”
The unfortunate and sad reality of this new virus is its targeting of the elderly, and those with underlying health issues.
As a consequence of the increasing death count, there will be potentially a larger amount of properties entering the market in the coming months.
In addition to the property sector, stock market behaviour over the last two weeks has been downhill, with previously successful firms such as Amazon and Tesla now entering a red zone.