When looking at the numbers from months ago, the affect the Coronavirus outbreak has had on the property market paints a chilling scene.
Just before the novel COVID-19 virus began its global spread, the UK economy was experiencing a six-year high. This was the highest monthly level of borrowing since 2014, and the highest in loan value since 2008.
How are companies answering the problems coming up from the decline in property viewings and sales falling through while the country locks down in quarantine? Zoopla has predicted a 60% drop in property sales and Purplebricks has announced staff furloughs. Others are upping their mortgage deposits and cutting back on products for mortgaging property to make up for the Bank of England cutting interest rates.
In the US—specifically in Puget Sound, in Washington state—the market was rising exponentially since the beginning of 2020, showing impressive home price gains and hitting the top of the national average for two consecutive months.
After COVID-19 entered the country, and rocked Seattle, WA specifically, which had seen home price growth of 5.1%, rivaling numbers from Tampa, FL and Phoenix, AR, saw a massive decline as the area went into stand-still to begin dealing with the virus.
But, there is hope. Lenders are saying they are still looking to lend and other portals are switching to fully automated services and complete online experiences to continue business while consumers stay in their homes.
Point2 Homes recently ran a survey which showed that people are confident in the market, regardless of the global pandemic. The survey covered almost 3,000 people who were asked to give feedback on what they are expecting to happen in both the short- and long-term, when it comes to the virus' impact.
The survey showed that those between the ages of 45 and 54 are the most optimistic about buying, 55% of which are currently looking for a new home. Those over the age of 65 showed the opposite, with 27% saying they have postponed or ended any actions in buying a new home while the pandemic strikes the country.
The survey concluded that 34% still plan to buy a home in the next half-year and 25% planning on purchasing a home within the next year.
Real estate companies around the world are doing what they can to stay afloat, keep the workforce, and continue to bring services to the public. Point2 Homes' survey is an interesting look into the average consumer's intention when it comes to balancing the pandemic and continuing life as normally as possible. Surveys like this one will be a boon in guiding the path portals take next as they navigate this new socio-economic shift.