Property and search engine data has revealed a drastic drop-in market activity, but there are still signs that buyer demand is holding up.
Zoopla data shows the number of sales agreed and new listings has dropped by 70% since the start of the lockdown on March 24th up to the end of last week.
The portal said listings are still being viewed but this has dropped, as backed up by research from agent comparison website GetAgent.
It found Google search volume of buyer and seller keywords was down 54% and 62% respectively between the middle of February and the end of March.
This includes search terms such as Rightmove, Zoopla, house for sale, property for sale and estate agents.
GetAgent analysed listings from Zoopla and found the average number of views in the first three days of a new listing has also dropped from 82 in February to four as of the start of April.
The number of new listings across Zoopla, Rightmove and OnTheMarket was down from 8,535 added per day in February to just 672 as of April 6th, GetAgent said.
Analysis of weekly new listings by GetAgent also showed the number of properties coming to market is down 70%.
Zoopla said it is not all bad news though, claiming the number of homes for sale per estate agent is just 1% lower than it was on March 7th as vendors and agents maintain live listings.
The portal said the level of buyer demand was consistent with Christmas 2018.
Richard Donnell, research and insight director at Zoopla, said: “The impact of coronavirus on the property market might be far-reaching, but after a rapid decline in market activity most indicators are now stabilising at levels well down in what would be expected at this time of year.
“So much so that market activity is currently in line with that recorded over Christmas 2018, when the market backdrop was weak and consumers were also grappling with Brexit uncertainty.
“While the recent drop in activity has been sharp, the market has not ground to standstill.
“There is still activity going on, just at much lower rates than you would expect in a busy spring market.
“Consumers continue to engage with what is on the market and contact estate agents, planning ahead for when restrictions are eventually lifted.”
GetAgent’s analysis of market data is being updated daily at: https://www.getagent.co.uk/coronavirus-housing-market
Knight Frank has also issued information on the changing market conditions.
It says that an analysis of sales data shows how abrupt the impact of Covid-19 was on the UK property market. In the week ended 14 March, there were 19% more sales than the five-year average.
By the following week, a drop of 53% was recorded.
By the week ended 4 April, sales rates were two-thirds of the five-year average.
“The government understands that moving house has enormous knock-on benefits for the wider economy,” said Tom Bill, head of London residential research at Knight Frank.
“Anything it can do to kick-start the process once lockdown measures are relaxed will have ramifications far beyond the housing market.
“A material cut in stamp duty or an extended SDLT holiday should be central to these efforts.”
“Based on the assumption that current movement restrictions are maintained through to the end of May, our view is that sales across the UK will total around 734,000 for the full year, a 38% decline from the level seen in 2019, with slightly smaller falls seen in Greater London and in the prime central London market.
“While we expect a revival in activity to continue, with volumes next year expected to be 18% above the level seen in 2019, this expansion will not fully offset the drop in 2020.
“Of the nearly 526,000 sales we expect to be “lost” this year, fewer than half will be carried into 2021.”
Comments (9)
I’ve potentially got a new listing this week. It’s a property I’ve seen already, empty and refurbed. Vendor asked if he opens up can I go in do details, video tour etc which I’ve agreed to do, it’s also only about 5 minutes walk from my house. Locally though in the lakes 2 weeks there have been zero new instructions with the exception of a new development that keeps dripping in property.
Honestly, the country has a whole will be lucky to see 500 sale agreeds within the next 2 weeks.
Sold a bulk deal yesterday to a HA. Deals are still there to be done if you’re in a position to work at it still.
At 0830 this morning, the Zoopla figure for property adverts “Just added” to to platform in the previous 24 hours stood at 895.
Of that figure, the two-outlet company by the name of RW Invest that I’ve commented on a couple of times in the last week accounted for sixty-nine ‘listings’. These were properties that had last been added 2 days ago… and two days before that… rinse & repeat the cycle.
A little deeper digging revealed another firm – ‘Alesco’ – which has has so far flown under my radar, seemingly listed one hundred and twenty four properties as “Just added” to the platform.
So – there you have two companies – accounting for twenty one point six percent of the entire UK listings “Just added” in a 24-hour period to the Zoopla platform.
Might this suggest an update to an old saying be warranted –
‘Lies… damn lies…
…and Zoopla “Just added” listing statistics.‘?
Scandalous! Are Zoopla asleep at the wheel? On yeah, stupid question.
Thanks Pee Bee. Perhaps PIE can liaise with you prior to publishing the press releases on statistics like these. I do not expect in depth journalism on these things, but I do not think it unreasonable to question some statistics that anyone in the industry should be looking at and thinking that is completely outside what is happening to me.
Congratulations to Major Tom on the sales, however, my experience of HA’s is that the sale is not concluded until a committee has given final approval. I am not suggesting that a deal has not been made, just that these ‘deals’ have nasty habit of becoming unmade with some organisations. Keep plugging on though, sometimes it is just activity that keeps us all positive.
Just reread the article and noted average number of views for new listings in first three days was four! The market has stopped and anyone saying any different is spinning a story for reasons I am not quite sure of. I still do not understand the new listing figures though, who is still listing?
Perhaps my comment below provides part of the answer to your very valid question, flockfollower102…
Lies, damn lies and statistics. If this is really like December 18 I dread to think how some agents coped. I do not believe the new listings figures until they distinguish between ‘ brand new’ and ‘relisted’. The only new listings there could be would be for empty properties. If you are listing from a vendors virtual tour, hold on for the CPR claims that will come. How can you list a property without seeing it? Probably just getting het up over nonsense self promotion, but can Eye please ask for some clarification on these figures as they bear no relation to my local market. Most offices are closed with majority of staff furloughed. Who is listing properties and tieing sales on properties you can’t view? Who?
Sometimes there is just too much information. With all due respect to Zoopla, we KNOW the disaster we are dealing with.
And in fact Zoopla’s stats are almost surely behind the curve. It’s a whole lot worse than December 18. And Dec 18 was just one month This is going to be ?????? months.