More home sales are expected in 2021 than during the last market peak in 2007, before the financial crisis, new data has revealed.
According to estate agents Zoopla, “the dynamics of the UK property market continue at the same rate”, with sales transactions expected to reach 1.5 million in December, up 45% year-on-year.
He said in a report that while the total number of transactions in 2020 was reduced by market closings during the initial foreclosure, the average annual transactions over the previous decade rarely exceeded 1 million to 1.2 million.
Sales of 1.5 million would mark 2021 as “the busiest sales market since the peak before the global financial crash, and one of the busiest 10 years since 1959.”
The value of homes sold in 2021 is expected to reach Â£ 461 billion ($ 654 billion), up 46% year-over-year and 68% from 2019.
As intense market activity boosts total sales value, more expensive homes also change hands when people are “looking for more space.”
Caroline Pattinson, Managing Director of Realtor Pattinson, said: âOverall, properties are selling much faster than before the pandemic, and it is common in this current market to find that a home has been offered in a few days.
The annual growth in house prices has almost doubled in the past year. In April, house price growth reached 4.1%, up from 2.3% in April 2020.
The total number of homes available for purchase is down 20.8% over the year in mid-May, compared to last year’s average, and activity is likely to be hampered by supply constraints.
Read more: Shortage of sellers is pushing UK house prices up
“The main challenge we are now facing is a shortage of inventory, in fact we are down about 36% year over year – a challenge facing the industry as a whole and which will lead to competition. additional and higher prices, âsaid Kate Eales, regional residential agency manager at Strutt and Parker.
âBut with the continued success of the vaccine rollout and people feeling more comfortable, we expect more vendors, especially the older generations, to come to the market now. As such, the gap between inventory and demand could narrow during the remainder of 2021. “
Grainne Gilmore, head of research at Zoopla, said: âThe easing of lockdowns will continue to cause a natural drop in demand, as people will be able to see their families and enjoy facilities that have been closed for more than a year, but New buyer demand will continue to emerge throughout the second half of the year, with office workplaces confirming whether they will pursue more flexible working practices. “
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