In April 2020 economists and property market commenters were sounding the alarm. They forewarned the Covid-19 recession would trim tens of thousands of pounds off the value of Wigan homes, anywhere between 5%-15% down
However, as we approach the end of 2020 Wigan property prices are doing quite well.
So what is really happening ?
The considered opinion of the Treasury in 2016 was that house prices would drop by 18% if the country voted to leave the EU.
But let’s compare what actually happened to Wigan house prices in the last four and half years …
Wigan homeowners with detached homes have made an average of £25,800 profit, a rise of 11.3% or a weekly profit of £99.23 between the summer of 2016 and now
The figures for other property types are..
• Wigan detached homes weekly profit of £99.23 per week
• Wigan semi-detached homes weekly profit of £70.77 per week
• Wigan terraced homes/town houses weekly profit of £36.15 per week
• Wigan apartments weekly profit of £63.85 per week
The property market boom has definitely been helped by the Chancellor’s Stamp Duty holiday.
However all the main reasons for moving home have not disappeared and our needs and aspirations have changed during Covid, have all pushed the rise in demand.
So, what will happen in 2021 ?
Truth is nobody knows
We will have high unemployment, but on the other hand ultra-low interest rates.
We are not building enough affordable housing to keep pace with demand.
We have huge indicators for both putting pressure on prices going down and going up.
Rightmove are predicting more than one million homes will sell in 2021, the first time since the last boom in 2007, and that UK House Prices will continue to rise, albeit more slowly, by 4%
Only time will tell which of these pressure will be the most dominant in 2021, in the the Wigan Property Market.