Agents reporting recovery levels in London and the south-east following the general election could be in for disappointment.
While demand has spiralled, supply is down in London and the south-east, and barely up in most other regions.
Zoopla’s research director Richard Donnell yesterday evening told EYE that new sales listings in the first four weeks of this year are down between 1% and 2% in the south-east, and by 6% in London compared with 2019.
He said that in the rest of the country, supply in the first four weeks of 2020 was up by 2% compared with the average over the last three years.
Donnell also told us that Zoopla is happy with the launch of its new price estimating tool, “given the scale of the change”.
The tool, which has been criticised by home owners complaining that their property has been devalued, now gives a range of prices.
He said that the introduction of a range of possible values meant that vendors should realise that there is not just one price for a property, and that local estate agents are the best placed to advise.
The Zoopla research also shows:
· Demand has bounced in first four weeks of 2020, as reported in the Cities Index
· The supply of homes for sale per agency branch is in line with last year across all regions over the first four weeks of the year
· Compared to the average over the same period in the last three years, new listings are down by 1% across southern England and 6% in London
· However, available supply is 2% higher in northern regions
· Weaker growth in new instructions in London is down to above average supply in 2017 and 2018 as landlords and others looked to exit the market at the time when demand was weaker
· London has been through a three-year repricing process, with a narrowing of asking to achieved prices. Zoopla says it is “motioning towards more balanced market in London”
· Tighter supply supports price levels and explains why market conditions are improving in southern England after a three-year period of weaker market conditions
· Anecdotal evidence from agents shows that vendor expectations on price are increasing in London
· The industry would much rather see increased transactions in 2020 than higher prices