The demand on the housing market has been strong for the last year despite a global pandemic hitting consumers and the economy hard. Many experts have sought to discover exactly why the demand was high and why it remained so throughout lockdowns and growing concerns for the economy. Many factors emerged from a hard look at why people were seeking to buy and those same factors might well be causing the market to slow down this summer.

One of the major reasons that the housing market flourished during the pandemic was the desire of buyers to find a home that better suited their pandemic lifestyle needs. The search was on for more space and it was dubbed the “race for space” as home buyers sought homes with gardens and more interior space to accommodate a variety of new wants and needs.

Home buyers were on the hunt for a home that offered space for working from home, space for children to learn and study, space for fitness, space for entertaining, and in some instances more room for extended family and friends to become part of the regular household so future lockdowns were experienced together rather than apart.

Many sought to move to the country and away from the congested and every growing numbers of positive Covid-19 cases that were the norm in the larger high populated cities. 

Other factors that made buying during a pandemic attractive were the historically low interest rates that made borrowing cheap. The government also offered a tax relief with the stamp duty holiday that was put into place last year and had its deadline extended from March 2020 to the end of June 2021. 

Another government scheme backed lenders to offer buyers the ability to purchase a home with only a 5% deposit. 

Not only were first time buyers active in the housing market, but many homeowners were pushing aside the usual drive to remortgage and choosing instead to move home. Even those already on the property ladder discovered there was a need to grab a place that better suited their new pandemic lifestyles.

The housing market has remained highly active with average house prices breaking high records month after month this year as the stamp duty holiday deadline neared. 

Yet, the factors pushing demand in the market have been changing and a slowdown appears to be on the horizon so says reported data and experts. 

The stamp duty holiday will be reduced as of the end of June. Those that could take advantage of the full discount have likely already done so and those purchasing afterwards will have to be content with a reduction of the savings available earlier. Also, some lenders have begun to pull their lowest interest rate deals and put in their place great deals, but perhaps not so much the fabulously low ones of weeks or months ago. 

Finally, the pandemic lifestyle is evolving to a post-pandemic lifestyle. Vaccines are allowing things to get back closer to normal. Many that were determined to move into a home that better suited the situations that the pandemic forced upon them are perhaps willing to wait it out now that we might be closer to coming out of the global pandemic.

Experts are also blaming the higher asking prices on the market. Demand has made bold sellers. Their historically high asking prices are being met and properties have been purchased in a short time on the market, some in mere days. Yet, the higher prices are discouraging buyers and pushing others out of the market.

Experts are forecasting continued demand in the market, but at a slower pace. 

The most interesting data that will be awaited will be in reports that reveal the demand from shoppers searching the market and those buying after the stamp duty deadline. 

It should be noted that things could come into play unexpected that might boost the market once again. More properties could start appearing on the market as sellers decide to rush and get their property up for sale rather than awaiting a more demanding market. The pandemic could remain active and cause caution pushing those that were awaiting a sooner rather than later outcome to secure their more spacious home. Lenders could attempt to lure in the attention of those final buyers and offer even better deals than available currently. 

No one would have expected such a strong and resilient housing market during lockdowns and in the height of the pandemic, and no one should count out the strong desire of buyers to climb onto the property ladder and realize their dream of being a homeowner. The housing market might well remain strongly active throughout the year despite what is expected, as it has been surprising experts month after month for over a year now.