Another out-of-date index shows market’s pre-virus potential

Another index shows how strong the market was in the build-up to the escalation in Coronavirus across the country. 

The website Home - which produced an index of asking prices based on portal listings and other elements - excludes homes above £1m. For its March market snapshot, released at the end of last week, it says that “the market is in fact in great shape and showing considerable potential for growth this year.”

No dates are given for precisely when the contributing data was collected, but in recent days agents have widely reported a very sharp drop in viewings and at least some sales collapsing as buyers and sellers have lost confidence due to the Coronavirus outbreak.

In addition, the National Association of Estate Agents has in the past 48 hours warned of a major drop in viewings and possible risk to the financial viability of some agencies.

However, the Home index - clearly relating to a period immediately before the outbreak became so damaging - says: “Confidence is returning, prices are rising over and above seasonal expectations in all regions and momentum is increasing. In particular, the London market has recovered from several pitiful price correction years and now looks set for considerable growth. The mix-adjusted average home price for England and Wales has risen to 1.8 per cent year-on-year; the highest such growth seen for two years.”

It continues: “Low stock levels and low supply remain key drivers in both the sales and rental markets. The total stock of property for sale in England and Wales is now down 11 per cent year-on-year, but London is still the worst hit with 19 per cent less property on the market than a year ago.”

Yesterday Rightmove released its latest asking price data, again portraying a strong market with excellent prospects for 2020 - and again using data largely pre-dating the disruption of the Coronavirus outbreak.