Not The New Normal
As we emerge from lockdown restrictions and start to enjoy sharing a meal indoors with friends, visiting family members and perhaps dreaming of a foreign holiday, or at least a staycation somewhere in Scotland, the housing market remains the primary preoccupation for many households. From the market closure to sales boom, the housing market appears to many to have been in a fever since last summer, however, there is more than just delirium behind the rising prices and strong demand.
For many people, the compromises they have been making on locations and living space, for reasons of convenience and commutability, may now be increasingly unnecessary. Combine this with the fact the closure of the market built up demand, meaning that when transacting was allowed again there was a flood of activity. These factors have created a supply and demand imbalance, with more demand for desirable house types and locations than there is supply in the market.
As 2021 has progressed, these conditions have created a highly competitive rising market, but despite all the fluctuations over the past 12 months, there has been a broadly similar value of property transacted when compared to the 12 months preceding the lockdown.