Surge in market activity will delay a drop in house prices, says Zoopla
The resurgence of the property market, which has seen a significant uptick in demand for homes, is expected to delay property prices tumbling, according to Zoopla.
The property portal says that since the market officially reopened on May 13, data starting to feed through points to a resumption in the upward pressure on house prices recorded in the first two months of the year.
This is evidenced by asking prices for properties marked as sold on the website registering a similar growth rate of the first two weeks of June as those rising at around 7% in the first three months of 2020.
Most new sales, according to the analysis, will complete between August and October, allowing annual house price growth to remain between 2% and 3% over the next quarter.
Zoopla says that while many commentators have predicted annual house prices falls for the calendar year due to Covid-19, it expects any falls to only become clear in the final months of 2020.
Despite positive signs, demand could weaken in the coming weeks as the economic impact of the pandemic starts to affect unemployment levels and people's finances. read more