The property market is showing ‘far more resilience than had been expected’

There’s been “a strong initial bounce-back in all metrics” since the property market lockdown was lifted on 13th May, reports Rightmove – but 175,000 vendors are “missing the market”.

Average asking prices for new properties coming to market in England are now 1.9% higher than in March, before the lockdown, reports Rightmove, having risen by £6,266 to £337,884. And buyers are now paying closer to asking prices than at the start of the year, during the post-election bounce.

The portal’s data “indicates far more resilience than had been expected” in the property market under lockdown, “with a strong initial bounce-back in all metrics.” The platform has experienced its ten busiest ever days in May and June (topping out on 6th June, with a combined 955,000 browsing hours), and some of that interest that has converted into action; enquiries jumped by 40% from early March to an all-time peak on 8th June.

Demand and deal numbers appear to have returned with gusto in the month since the market reopened on 13th May. Estate agents have already agreed over 40,000 new sales since the market reopened in England, recovering from being 94% down when the market was closed, to being 36% down comparing 13^th May – 4^th June with the same period last year. A daily look on Friday 5^th June revealed that sales agreed were down just 3% on the same day last year.

“New supply is also starting to recover,” says Rightmove, although it suggests that “there are over 175,000 missing sellers that would have come to market between 24^thMarch and 12^th May, when compared to the same period in 2019.”

Vendors are managing to get an average of 97.7% of their last advertised asking price, reports the portal. That figure is based on 7,000 deals agreed within the last month, but it’s worth noting that most of these have yet to complete. Analysis of completion data from Land Registry for February shows an average of 96.6% achieved of the last advertised price on Rightmove.

“This indicates that sales agreed after the market reopened have not only shown price stability but a likelihood of modest upwards price pressure,” says Rightmove.