The property market is showing the first signs of significant cooling after months of boom, latest housing data shows.
Data firm TwencyCI says the number of instruction began to shrink from 1st October onwards with supply down 47% since then, while demand for homes reduced by just 19%.
In other words, it’s quickly becoming a seller’s market. The company says demand is now outstripping supply by 200 properties a day which, it claims, is unsustainable and will have to be corrected ‘very soon’.
This will, most likely, force up prices significantly in the New Year as vendors become more confident.
But TwencyCI says that, despite a noticeable cooling, both supply and demand remain higher for this time of year than a year ago before the pandemic struck.
“Over the past few months, we have experienced an extremely buoyant property market with many estate agents overjoyed at the high demand for property,” says TwentyCI CEO Ian Lancaster (pictured).
“Many conveyancers and removers are struggling to cope with these levels of demand, and for those that have been in the industry a long time, we have heard the phrase “we’ve not seen anything like this since 2007” many times.”
His company’s latest report shows that, even during the past few days, the volumes of new instructions have been falling as ‘Lockdown 2.0’ starts to take shape and “vendors’ minds turn to other factors, such as the run up to Christmas,” he says.
Lancaster says that the reduction in supply is almost wholly due to the usual slowdown, but that the slowdown in demand is influenced more by Covid-related buyer caution.