The future world will likely be analysed in AC and BC terms, or After and Before Covid-19. As we move into Spring 2020, analysis by Rettie's Research Team has highlighted the significant impacts of the Covid-19 pandemic on the housing market in the North East.
Key Findings:
- Social distancing and Government measures have effectively placed much of the residential sales market on-hold.
- In Newcastle the number of new properties listed for sale in the first week of April has dropped 95% year-on-year.
- Experiences of other housing markets hit by public health outbreaks suggest transactions rather than values see the immediate fall. Transaction falls during major crises are typically between 40% to 70%.
- During the Global Financial Crisis transactions fell between 50-60% across the UK in a year.
- Current transaction falls have occurred more rapidly than previous cycles due to the measures in place. However, there are positive signs of recovery emerging from overseas markets, but these remain nascent.
- It is difficult to see when circumstances will be back to normal, until there is a date for the end of the lockdown.