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Property Market Continues To Boom As New Figures Show 1 In Every 50 Homes Has Been Sold

Zoopla has released new research into the market showing a staggering 1 in every 50 homes has been sold so far this year. This is a 100% rise from this point last year, when the market was at 1 in every 100 homes being sold. Zoopla’s monthly House Price Index shows the market is currently 6 weeks ahead of where it would be in an average year, with a whopping £149bn in property sales so far in 2021. 

The persistent high demand has seen the supply of new homes drop dramatically, with a fall of 30% compared to the same period in the 2017-19 markets. This has especially affected three- and four-bedroom properties, likely because of the trend in homeowners looking to upsize. Listings of three- and four-bedroom homes is at a five-year low, as supply struggles to keep up with the current extreme momentum of the market. 

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Despite these figures, Zoopla says the supply situation may be easing up: 

The head of research at Zoopla, Grainne Gilmore, had this to say: 

“The imbalance between supply and demand, which is creating a very tight market for family homes, will start to ease in the near term as homeowners become increasingly comfortable opening their homes to viewings, in turn, building a supply of new stock. The scale of buyer demand will also moderate from the peaks seen after Easter as lockdowns end across the country and there is some return to pre-pandemic ‘normality’.” 

She adds: “However, the fundamental imbalance will remain. Demand will remain strong as the ‘search for space’ among homeowners has further to run, especially as some office-based businesses are now confirming how their working practices will change in the longer term 

Gilmore concludes: “More flexible working arrangements open up new opportunities for homeowners to move to a further-flung location. At the same time, the roll-out of the 95% mortgage guarantee will mean more demand from first-time buyers, fuelling demand without replenishing supply.” 

In conclusion, we are likely in a pivotal point in the current market cycle. Demand is still sky-high, and prices are continuing to rise, and with the easing of COVID restrictions on the horizon, schools going back and a finite limit on the Stamp Duty holiday, sellers are in as strong a position now as they will find themselves. 

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