Will Coronavirus affect the Housing Market?

The property market has had a strong start to the year, and has not seen much of an impact from the pandemic yet. House prices and sales will take a hit at some point, however, there is always a silver lining to a bad situation.

Despite the uncertainty surrounding COVID-19 we are taking a look at some positives in the housing sector.

More money. 

If you are looking to get a mortgage the Bank of England has recently lowered its base rate. Borrowing has become cheaper! So those of you still keen to buy will be able to enjoy current low lending rates.

An easy win. 

Demand could also drop in the sector, as more people self-isolate and won’t go out to view properties.

While this might not sound like a good thing, it means that there are fewer people trying to buy the same property as you. With competition reduced you have better odds of being able to get that dream home.

Cash flow won’t vanish. 

There is also good news for those of you who are selling your property.

Not everyone will be suffering from job insecurity at the moment. Plenty of employers already have flexible working policies in place and contingency plans. Therefore, many people will still have capital available to spend on buying a property.

Additionally, if they can borrow more money from the bank, due to the low base rate, then it is easier for them to get finance to buy your house.

A quick recovery is likely.

While there is no doubt that the housing market will see some kind of fall-out from the Coronavirus threat, it is likely to be followed by a quick recovery. This is something seen time and again in the Stock Markets, with rebounds happening quickly after other pandemics, such as Swine flu and Ebola.

At Austins’ Estate Agents we would like to reassure you that we can support you through this tough time, whatever stage you’re at in the property market. 

We are taking COVID-19 seriously by taking extra hygiene precautions in our office, but we do understand some clients may feel more comfortable to practice the Government’s advice of social distancing.

Our team is friendly, knowledgeable and more than happy to conduct consultations over the phone. We also pride ourselves on using professional photography and high-quality brochures to make sure your house can be seen at its best on a virtual basis.

If you would like to talk to us about buying or selling a property you can call us Mon – Fri 9am to 5.30pm or Sat 9am to 1pm on 01920 244200.

We wish all our clients, friends and family well in this turbulent time.