First Time Buyers And Impact On Vendors
22nd July 2020
22nd July 2020
If you plan on selling your home, you need to be aware of what buyers are looking for. When you better connect with prospective buyers, you enhance your chances of making a sale. Of course, many homeowners have too much work to do in selling their home to spend time considering what buyers need from a home.
This is why you should call on Merrys. We are pleased to say we have helped many Northampton vendors connect with likely buyers. We know the local area well, and we know the local property market. If you are looking to connect with the most likely buyers in your area, we will ensure you make informed decisions.
There has been a lot of information and statistics issued in the housing market since it re-opened after lockdown, but some bodies and organisations are more highly regarded than others. When NAEA Propertymark issues information, people listen. This is because it provides realistic information from estate agents across the country.
Some of the leading statistics revealed by the organisation include:
The number of house hunters registered per NAEA branch member increased by 7% between February and May
The number of house hunters registered per NAEA branch member rose from 322 pre-lockdown to 344 post-lockdown
In May, 70% of properties sold at a price that was lower than the initial asking price
The average number of properties available, per branch as of May 2020, was 35
This figure is a fall from the figure of 41 per branch recorded in May 2019
The supply of homes, based on year-on-year, figures fell by 15% between March 2019 and March 2020
Sales to first-time buyers in May stood at 32%, increasing from the 22% sales to first-time buyers in February
Mark Hayward is the Chief Executive of NAEA Propertymark, and he said; “It’s great to see the market up and running again, bringing some much-needed confidence back. With estate agents following new socially distanced protocols and the demand for viewings soaring, we are set for an exciting summer.”
Mark continued by saying; “It will be interesting in the coming months to see if the lifestyle changes triggered by the COVID-19 pandemic will have an impact on house sale locations, especially in and around commuter towns.”
There have been calls from MPs for more to be done to support first-time buyers looking to step onto the property ladder. Warrington North MP Charlotte Nichols said; “The Government must be proactive in ensuring that the banks assist first time buyers rather than wealthy landlords to access homes on the market. Too many young people are losing life opportunities to the Covid-19 pandemic, and this must not be another instance of that. I have written to the Secretary of State for Housing to ask what measures will be taken to support first time buyers.”
Eleanor Williams is a Finance expert at Moneyfacts.co.uk, and she said; “First-time buyers are a vital part of keeping the mortgage market moving, and so it comes as great news that lenders are again starting to relaunch products in the higher LTV tiers. Concern has been raised about the possibility of house price falls and consequential potential negative equity situations, making lenders understandably more cautious about lending in these higher-risk circumstances.”
Eleanor continued by saying; “Lenders have also found though that they have been overwhelmed by the level of demand for these brackets of products, resulting in some needing to withdraw deals only recently relaunched in order to manage their workload. Consumer demand is clearly evident, and the re-introduction of more deals for those with a 10% deposit, or even less, by more lenders would hopefully provide prospective purchasers with the choice they need to move forwards with buying a home.”
Mortgage products for first-time buyers were removed or reduced by lenders during the initial days of lockdown. Since then, there has been a slow release of mortgage products suitable for these buyers. The more products of this nature available for buyers, the better for the entire industry, including vendors.
We know a lot of people are looking for guidance and assistance right now. If we can be of any assistance, we will. Therefore, if you have any housing market questions, please contact Merrys today, and we will be happy to help.