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A property firm which has analysed transactions across the UK suggests the market is, at last, ‘back to normal’ in almost every region.
Quick Move Now analysed the average number of properties on the market and the percentage of properties that are sold subject to contract.
Nationally, figures have returned to pre-pandemic levels; regionally, all but two regions – the North West and South West – are seeing similar market conditions to 2019.
Danny Luke, Quick Move Now’s managing director, says: “During the post-pandemic lockdown market boom, there were more properties listed with estate agents but a greater percentage were sold subject to contract. This meant, in reality, choice was more limited for people hoping to move. In February 2022, there was an average of just 10 properties for sale within a quarter-mile radius, down from an average of 16 in both February 2019 and February 2020.
“Now we’re back to an average of 16 properties for sale, and both the number of properties registered with estate agents and the percentage of properties that are sold subject to contract are at similar levels to before the pandemic. This is good news for both buyers and sellers. Buyers have more choice, which is important in keeping the market moving, and prices are largely remaining stable, which is needed to combat higher mortgage interest rates and the current cost of living challenges.
“Although home sellers might be concerned about a lack of property price growth, this period of price stability is necessary for the longer-term health of the property market and the economy, especially in light of the recent announcement that the UK slipped into recession at the end of last year. The level of price growth we saw post-pandemic was never going to be sustainable and would have been damaging to the economy if it had continued any longer.
“We’ve seen a lot of negativity around the property market over the last year and it has, at times, been very challenging for both buyers and sellers, but ultimately what we’ve been experiencing is a transition back to pre-pandemic conditions, in terms of price, volume, and sentiment.
“The only regions where things haven’t returned to 2019 levels are the North West and the South West. Whilst the percentage of properties sold subject to contract in the North West has returned to early 2020 levels, a greater number of properties are listed with estate agents. This means a larger number of properties are available.
“This is great news for potential buyers but will be putting downward pressure on property prices.
“In the South West, the average number of properties listed on the market is 27 per cent lower than in 2019. The average percentage of properties sold subject to status is also seven percentage points lower. This means there are fewer properties available in the region. If demand in the region is currently muted, which the lower average number of properties listed would suggest, the market will simply be operating at lower volumes. If, however, demand increases whilst supply remains limited, there is potential for strong price growth in the region in the coming months.”
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