Will There Be a ‘Boris Bounce' For the Wigan Property Market ?

Will There Be a ‘Boris Bounce' For the Wigan Property Market ?

 

The Halifax announced in early January that there was a Boris Bounce in the national property market as they stated national property values soared 1.7% in December 2019 - the biggest rise since the 1.9% month on month rise in February 2007 (a few months before the Global Financial Crisis aka the Credit Crunch).

 

The Boris Bounce is here … or is it?

 

The Halifax (and all other house price sources ) use data of property that has actually completed. The Halifax data was based on properties that completed in December 2019, but the average length of time between accepting an offer and completion is currently running at about 19 weeks. This means the figures used by the Halifax are for sales agreed in July / August 2019.

 

This growth relates to what was happening to the property market in Summer 2019.

 

One of the most important things for the property market is confidence. Interestingly, Rightmove reported a 28% surge in buyer enquiries between the 13th December and 18th December.

After a couple of years of Parliamentary stagnation , the confidence following this general election offers a much needed boost for the economy and confidence. Shares in builders Barratt jumped 14% and Persimmon 12% the day after the election, strongly indicating that the property market is about to move forward as the latent demand to move home is liberated. 

 

Looking at the previous elections reveals what happened to property values in the Wigan Property Market in the following 12 months

 

 

 

So, a General Election appears to have a positive effect on the Wigan Property Market rather than a negative one 

 

Looking forward, I would anticipate that the market will turn in favour of Wigan sellers as they will start to achieve higher prices, and there is an increase in the number of Wigan properties selling as more buyers have increased confidence to enter the market 

 

On the other hand, as more properties become available over the coming months, supply might outstrip immediate demand, allowing buyers to negotiate a better deal. But you have to also factor that most property experts agree that not enough new Homes are being built ( especially affordable starter homes ) 

So you can see, it is a very complicated equation to forecast 

 

The bottom line is, the Wigan Property Market will get a small boost now that the election has been concluded. Wigan house prices should continue rise, and the number of properties being sold will increase. It should also benefit from Landlords and Investors increasing their portfolios on which many low income households depend on

 

P.S .One final thought -  Don’t be alarmed when the Halifax announce in the March/April/May a reduction in property values - like I said before - this will be the prices achieved in the later parts of 2019 i.e. not what is happening right now.