2020 Housing market review, and what will the New Year bring
The year that brought us bubbles, tiers and lockdowns has now come to an end and we are all looking forward to seeing a more positive 2021 as the year progresses. As a business, we have had to adapt and change how we operate, introducing more virtual services and, just like many other businesses, having periods of working from home. Even when our doors have been shut, the property market has been open and what it year it has been, with many people continuing to move within Ferndown, Wimborne, Verwood, Bournemouth and Poole. As we take our first steps into the new year we want to give you an insight into what happened within the property market last year and what 2021 may bring.
The year of change
On talking to our buyers and sellers over the year, it is clear that this pandemic has been a cause for reflection and making some big changes. The Stamp Duty holiday did open the doors to a greater number of people fast tracking their future plans, but it wasn’t the sole reason people were looking for a new home. The impact of Covid, not being able to see family and friends, and changes in working situations have certainly been driving forces. We have seen families moving closer together, buyers putting a home office high up on their list, and also increased requests for homes that offer an annex or separate living space. Our experience was backed by a recent consumer survey by Zoopla, who also found that the Stamp Duty holiday did not influence 44% of movers’ plans, with people being focused on finding more space, or a change of location.
Location, location, location
The increase in the number of people who can now work from home has knocked down the walls of the commuter belt, and buyers have been seeking retreats far from the metropolis in more rural and idyllic settings. We do have some beautiful scenery around us, stunning coastal villages and gorgeous rural retreats; it’s no wonder that we saw demand from buyers looking to make our location their home.
This demand has been seen right across the country. In fact, during 2020 Zoopla reported there had been a recorded 40% increase in demand for property compared to 2019. Zoopla also highlighted what we have seen within our local market, that the type of properties buyers are seeking has changed. Their findings pointed to increased requests for homes with ‘gardens, parking and extra space to work from home’. As a result, the price growth for houses was more than double that for flats. Within the South West, there was an annual increase in property prices of 7.2% on last year, according to data from Rightmove, with the average time to sell a home recorded as 59 days.
If you’re thinking of moving during 2021 you will want to know what this new year is likely to bring. You will be pleased to know that predictions are that house price growth will continue, with a robust average growth of 4% in 2021 (Rightmove). Due to the continued uncertainties and economic pressures, such as increased unemployment and Brexit, it is believed that after a very busy Q1 in the housing market, it could start to slow down in Q2. Zoopla predicts that house price growth will continue to decline towards the end of 2021, to +1% by the end of the year.
As with all predictions, these are national averages and do not take onboard what is happening locally. We agree with the strong start to the year, and a possible slowdown, but our location is in our favour when it comes to sustaining stronger house price growth during 2021.
What about Bournemouth?
According to the Zoopla house price index (November 2020), Bournemouth has been ranked in 14th place for UK city with the greatest increase in property value, with an annual 2.6% change in house prices. This report also shows that the average price for a property in Bournemouth over this time was £294,000.
The time is right
Regardless of what the market brings, only you will know when the right time is for you to move home, and when that time comes, we will be here to make it happen. We have seen such a wealth of incredible homes throughout Ferndown, Wimborne, Verwood, Bournemouth and Poole entrusted to our hands. We can honestly say that seeing the joy when our buyers and sellers move home has made the incredibly challenging 2020 one of our most rewarding years to date.
With the government’s announcement of the latest national lockdown, effective 5th January 2021, we confirm that in line with government guidelines, Edwards offices will remain open for business.
Can estate agents stay open in lockdown?
Estate and letting agents can stay open during lockdown, the government website states.
Moving home during lockdown
You can find out more about the government’s advice for visiting potential new homes and moving house here.
We look forward to helping you soon.