Home » News » Housing Market » Sales agreed plummet by 70% since lock-down, market snapshot reveals
Housing Market

Sales agreed plummet by 70% since lock-down, market snapshot reveals

Zoopla says that although activity is falling off a cliff, sales continue and a mass withdrawal of properties from the market has failed to materialise.

Nigel Lewis

coronavirus

Zoopla has released data that shows sales activity falling off a cliff in recent weeks, although there has been no mass withdrawal of homes from the market as agents and consumers adopt a wait and see approach during the Coronavirus crisis.

The number of new sales agreed dropped by 70% following the lock-down on 24th March and the number of people enquiring about properties fell by 60% over the past four weeks as the Coronavirus threat loomed, intensified and then arrived.

Agents seeking some encouragement should note that homes continue to be sold as the existing sales pipeline continues, and that properties were being listed right up until the lockdown. This would suggest that vendors were happy to get their homes on the market despite the likelihood of a prolonged activity freeze.

One result of this tactic is that stock levels remains just 1% lower at the moment than a month ago.

Zoopla says that although a huge number of sales fell through on 24th March, the fall-through rate has returned to normal among homes that are going through to exchange, namely approximately a third of transactions.

But unless the pandemic eases and travel restrictions are at least partially lifted, the Zoopla figures suggest the market will eventually run out of road as the number of new homes coming on to the throttles off.

Richard Donnell imageRichard Donnell, Research & Insight Director at Zoopla, says: “Demand for housing started to fall two weeks before the Government announced the lock-down.

“The closure of estate agency branches and general uncertainty has resulted in far fewer sales agreed over the past fortnight, with less new supply coming to the market.

Read more about the housing market and coronavirus.

April 8, 2020

2 comments

  1. How are even 30% sales being achieved? – other than unlawfully. You can’t do viewings and I don’t believe that those 30% of sales are coming from older viewings still. I know one agent here is still listing and sticking two fingers up to those who are trying to help the country by staying in. Most agents will have no pipeline in 3 months time and will essentially be starting from scratch, just as Rightmove wants their full price no doubt…. then watch what happens.

  2. Three weeks of lockdown will of course slow the amount of sales down, there will be a residual amount of business from viewings and offers pre-covid for agents who have some personnel still trading within the businesses. But, the inability to list new stock or show any stock will be the big kicker, especially if the present lockdown continues.

    For residential agency which has its own natural cycle, Spring is the optimum time to list and sell property stock, a three week or more lockdown in December would have minimal impact, now it has huge financial implications. And if lockdown is extended which looks likely, many businesses will be further stress tested.

    Property portals too, may be impacted too as it is the ‘new stock’ that brings buyers to the portals in the first place, so if there is no new stock for a protracted period will this change consumer habits?

What's your opinion?

Please note: This is a site for professional discussion. Comments will carry your full name and company.

This site uses Akismet to reduce spam. Learn how your comment data is processed.