Can the housing market be made to unstable with the recent Corona Virus outbreak?
Splattered across every piece of news media is some story of the how the Corona Virus has spread further in the UK, or that huge swathes of Italy is being isolated, or panic buying of loo roll at your local spar. And it’s a scary thought, a new illness spreading through your community, and anything of the unknown is a frightening thought. So what repercussions could this be having on the housing market.
The housing market is always closely tied with two elements, the financial sector and peoples ability to spend, or what’s sometimes called consumer confidence. If people who want to buy things, they need to be confident that they can afford it. Factors that can effect consumer confidence are job security, the economy in general, average pay, elections, and general news. And of course consumer confidence is very closely linked to the financial industry.
So when the Guardian reported a story about the sale of a house not going through because of the corona virus. It was alarming that something involving our health could give people cold feet when buying a house. The issue in the story was that the individual worked for an events company, and because of the virus, events are getting cancelled left, right and centre and his confidence in spending was reduced. This was an isolated case. But it’s cant be the only one.
See full story here
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Will this effect house prices?
If it blows over, then I feel it will be no harm done. So far this year has been good, gradually growth throughout, we wrote a blog about how the housing market has grown here.
But if it continues, more and more industries in the UK and across the world will be more effected. For instance, if more imports are delayed from China, this could hugely effect manufacturing, people in those industries may lose confidence in their job security and ultimately in their ability to spend.
It’s not just going to be the events industry, if other industries are struggling it will have a knock on effect on other industries. With all this, if people are not looking at buying houses, then the housing market will slow and this could have an adverse effect on house prices. It’s not amazing news, but it could be something you look at if your are thinking of selling.
As always speak to someone you trust and make sure you make the right decision for you and your family.