The housing market is often the greatest indicator of the performance of an economy. With a recession on the horizon, intrepid economists have kept their fingers on the pulse, analysing emergent trends from a reopening market. While some sentiments take the view that it’s all doom and gloom, others seem to feel that the current crisis has merely held back demand which will then be released along with the lockdown, leading to a surge in purchases and sales as people try to get away from the four walls that they have been forced to look at during the interminable lockdown period.
Leading consultants on property and Stamp Duty, Cornerstone Tax, have been looking at the different sectors of the market due to each area performing differently and have provided their advice to prospective house buyers:
David Hannah, principle consultant at Cornerstone Tax;
“The past few weeks have been puzzling for many in the property market, while many would have expected a dip in prices and demand, the opposite has occurred. House prices have actually now increased in some areas since before the start of lockdown. It is important, however, to remember that these prices are mostly asking prices from the sellers – not the real value.
Buyers should be mindful of real property value and wary on inflated prices. There is understandable concern to kickstart the market but that shouldn’t come at the cost of artificial price inflation of prices.
One thing is clear; post-pandemic there is likely to be a general economic uncertainty until our economy returns to full activity, the last thing we want to see is a property bubble which by its nature will eventually bring the market to a grinding halt. Pricing out first time buyers, making stamp duty more and more expensive and generally acting to the detriment of a healthy market.”
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