Newcastle Property Market Improved by 55.2% Over Pre-Pandemic Levels
Has there ever been a better time for Newcastle home sellers?
The Newcastle property market, for people looking to sell, is at its sturdiest for at least the last five years with home buyers jumping onto the Newcastle property ladder with abandon.
Newcastle house prices are anticipated to rise throughout 2021 after the Stamp Duty cut (and subsequent extension until the summer/autumn) and the newly revealed 95% mortgages for Newcastle first-time buyers (and Newcastle homeowners with minimal equity).
In addition, the continued low interest rates and the demand for larger homes because of lockdown, means the Newcastle property market should remain bullish for a while. There is a surge in potential buyers putting themselves on mailing lists with Newcastle estate agents, making the biggest disparity between supply and demand for Newcastle property for many years.
Fears of a cliff edge for the Newcastle housing market at the end of March have dispersed, somewhat due to the Stamp Duty Transaction tax deadline extensions, but also because the elevated level of buyer demand caused by the three lockdowns has continued to swell since the start of 2021 meaning that today …
63% of Newcastle properties on the market are Sold (STC)
Interesting, when utilising data from theadvisory.co.uk website, the Newcastle average for the last five years has only been 41%, meaning there has been an uplift of 55.2% in the proportion of Newcastle properties sold (STC) compared to that five year average.
Yet what can’t be forgotten is that 9 out of 20 Newcastle house sellers are also Newcastle house buyers as well, so whilst they do indeed achieve a higher price for their Newcastle property, they also have to pay more for the Newcastle property they want to buy.
So, how much will Newcastle house prices rise by?
Like all things in life, it’s all about demand and supply. I have discussed the demand, yet what about the supply of properties for sale?
There are 47% fewer Newcastle properties for sale today compared to 6 years ago
Whilst February saw a lower than normal level of new properties coming onto to the Newcastle property market, the easing of lockdown road map and faster rollout of the vaccine is also persuading more Newcastle homeowners (especially those older Newcastle homeowners who have had their jabs) to start making the first steps towards moving home in 2021.
This will mean there will be more Newcastle properties available for sale in the conventionally busier post Easter market in the coming weeks and months which should cause more equilibrium and help keep Newcastle property prices in check.
These are interesting times for the Newcastle property market. If you are a Newcastle homeowner or Newcastle landlord looking to buy or let your Newcastle property in the coming weeks or months, don’t hesitate to drop me a line to discuss what all the points raised in this article mean to you.