Many ‘experts’ have made predictions, but let’s be honest, nobody knows.
On a positive note, we have still had many people looking to proceed with their purchases as normal. We’ve had a few pull out, but honestly nowhere near what you might have expected or have been led to believe by the media.
Furthermore, our estate agency partners have reported that they are still receiving viewing requests, albeit nowhere near as many (to confirm, they are declining to do them). This continued demand may be because things are taking a little time to take effect, but only time will tell.
So what will happen when the restrictions are lifted?
Optimists will believe that the foundations of a strong market could remain (i.e. pent up demand vs supply, access to funding and cheap rates) and look for a V-shaped recovery.
Pessimists (and opportunists) will feel that prices could go down by up to 20% as a result of uncertainty, unemployment, being unable to get a mortgage etc.
Realists will say that it depends on when (and for some, if) people return to work and how their confidence / motivations have been affected. In addition it will depend on when lenders will remove any restrictions imposed as a result of Coronavirus and their appetite to lend.
From the conversations we’ve had, the general feeling is that prices will stall (what would be the point in changing a selling price now?), MAYBE dip slightly to begin with while the market gets going again and then slowly start to rise again.
However, please take this with a pinch of salt. We are experts with mortgages, not with house price predictions.
If you have any questions or would like any advice relating to your financial situation, just give us a call or drop us an email, we’re here to help.