What happened to the property market in May, is not what you think!

As the Government gives green light for the property market to restart, there is still a lot of uncertainty because our recent data shows staggering market changes in the last two months.

How Covid-19 Affected the Volumes of Sold vs New Properties in the Market?

Abricko looked into the data since March, which has shown that the volumes of sold properties plummeted 93.2%. Just over 5,000 properties were sold in March 2020 compared to over 75,000 sold at the same time last year.

No one expected such a significant effect on the market, however, the signs were there, in the data. Looking back into November 2019, we have seen an accelerating decline in the sold property volumes with a high probability of the numbers of sold properties in April being close to zero.

December 2019: -10%

January 2020: -22%

February 2020: -27%

March 2020: -88%

Then the data surprised us again! Looking into the volumes of new property listings online, we have seen a spike of 632%. 46,000 properties were put on the market in March 2020 and, which unexpectedly jumped to 291,000 new listed properties so far in May 2020 ( only in the first 10 days of the month!). This indicates the eagerness of people looking to sell their property resulting in high supply of stock at this point in time.

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How Do National Trends Look Like in May 2020?

In addition to the staggering changes in the market as discussed above, Abricko data shows the year on year change in sold property prices remaining fairly flat (+0.97%). This indicates a very slow growth in property prices comparing the prices now and a year ago.

However, the open market shows stronger figures as homeowners are looking to gain more for their bricks and mortar. The median open market property price increased by +7.14%. We have seen that often the open market trend, which currently is on the rise, tends to be followed by a closed market indicating that the sold property prices may increase as well.

In addition, we have been intrigued to dive into the data and identify the locations where the yields are high and where the opportunities for investment lie. This is what we found!

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Middlesborough is an absolute winner this month with an achievable current yield of 16%, followed by London. Manchester seems to be a strong competitor in the above table achieving 12-13% yields in several areas. While Sheffield, Ferndale and Birmingham also take place in our top 10. Generally, these yields are considered extremely good, therefore, it must be now time to take action not to miss out on a number of opportunities.

Abricko offers numerous ways to find your gold mine areas for property investment. Are you interested in the areas where you could achieve the best capital appreciation? Or maybe you would like to see where the prices are declining? This month we decided to share this with you to save the time of spending hours on research.

Areas Where Property Prices are Growing Year on Year

Have you guessed which would take the top 3 places? According to the data generated only a few days ago, the top first place goes to Harrogate, with the highest capital appreciation of 43% and a staggering 1,014 properties sold in that area alone in the last 12 months. While the second place is taken by Stratford in London and the third place by Clayton area in Bradford with 41% and 34% in capital appreciation respectively.

Our top 10 also includes areas such as Birmingham, Milton Keynes, Bolton, Doncaster, Sheffield, Chester and others.

Where did the market experience the hardest hit? From the data Abricko collected we can see that the greatest decline in property prices has been recognised in Durham (21%), followed by an area of Southwark and Waterloo in central London (SE1) and Kings Langley (WD4), just in the outskirts of London, showing a decline of -20% and -19% respectively.

Many other areas have experienced a hit on the property prices. Most recent data from Abricko indicates depreciation in property values in locations such as Spennymoor, Hartlepool, Great Missenden, Ilford, Liverpool ranging from -18% to -14%. What does this mean for the property market going forward? Maybe this represents an opportunity for investors to buy properties with a discount, but maybe it actually indicates a further decline. While no one really knows where the market is moving, the millions of pieces of data collected on a regular basis from Abricko can help in making a decision in the future.

Conclusion:

We knew that Covid-19 is going to hit the property market, but no one really expected the sales to drop over 90%. The data collected with the help of Abricko has been extremely surprising and interesting. We have seen that the top highest yielding locations have changed completely with the top 1 place taken by Middlesborough. In comparison, the greatest growth has been identified in Harrogate – one of the top locations of the ‘Golden Triangle’ of the North. While, on the other hand, the biggest hit was felt in Durham with property prices plummeting -21%.

We are intrigued by what the data brings us next and this is where we will look into the 10 major cities across England and Wales. Abricko takes pride in being able to share our findings with you, therefore, don’t miss out on the follow-up report with the most recent figures of the 10 major cities coming out!

Few questions:

- Did you want to find and close more deals?

- Are you also jumping around from Zoopla to Rightmove wasting tons of hours or pay someone to do that?

- Are you wasting too much time to create a professional report for your clients with all data that you need?

Let the machine work for you! Get more out of Abricko! Do your own analysis! Source 10 times more properties deals and package them in a click in your white-label report.

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