The impact of the coronavirus pandemic has been far-reaching. Many industries have completely shut down. The property market is one of those that is for the most part frozen, and there’s lots of speculation among industry pundits and the press about its future.
Because of this it’s more important than ever to get an objective view of the situation. We’ve launched a data-driven dashboard that tracks the property market, both nationally and locally. We hope that it will provide some support and confidence with your future planning efforts.
On the dashboard, you’ll be able to see:
To find out what’s going on specifically in your local area, simply put in your postcode.
We thought it was important to include a mixture of ways to measure the health of the property market. No single metric will be able to tell you everything you need to know, but together this data provides a clear indication of the movement and health of the market. And, because of the metrics we’ve chosen, you’ll be able to get a sense of who’s looking at listings, and how many people are actively interested in buying and selling.
Below we outline each of the metrics: what they mean, why they’re useful, and what signs of recovery we’re looking out for.
Our market health index provides an at-a-glance view of the state of the market. It encompasses all our other metrics and compares them directly with pre-lockdown averages, so you can quickly see how the market is doing, and how far we still have to recover.
In order to calculate market health, our clever algorithm takes an average of pre-lockdown market performance and compares this to an average of the data we have collated post-lockdown. We’ve weighted each key metric depending on it’s importance to measuring the market. A full score of 10 means the market has returned to its pre-lockdown health.
The first two graphs on our UK property market dashboard track how many new properties are listed on online property portals each day, and the number of views each of these properties receives in the first three days it’s online.
These two metrics give an indication of how the market is moving. Listing properties online requires both active estate agents and interested home sellers. We expect to see an increase in the number of properties listed online as one of the first indicators of market recovery.
The number of views a listing gets in its first three days is also an indicator of market activity. Keen potential buyers check online portals regularly to keep track of any new available properties. This means the average number of views can give a sense of the number of interested buyers currently looking for their next home. Inevitably, there are a number of ‘window shoppers’ - people looking at property portals but not currently interested in buying. By only taking an average of the first three days of views we eliminate some of these people. But it’s important to look at this metric as one of many measures of how the market is recovering.
Measuring the number of properties listed and numbers of views, can only give a partial view into market health. These metrics are great indicators of potential movement in the market, but they don’t give an accurate view of home buyer and home seller intention. How many of these people are intending to put their property on the market? How many are actually looking to buy right now?
In order to get a more complete picture we decided to analyse how many people were actively searching the internet for terms specifically associated with buying, selling and moving house. In conjunction with the other metrics, this gives a more in-depth view into who’s actually participating in the market. As the industry recovers we expect search volume to increase accordingly.
Looking at how many home sellers come through the GetAgent platform provides a similar function. Homeowners who come to our site are motivated to find the best estate agents in their area. This means they can be seen as having ‘high intent’. Comparing the number of users we have to pre-lockdown levels is therefore a fairly accurate way of seeing how many people are genuinely ready to sell their home. As the market recovers this number will also increase.
Check out the UK property market tracker and see how the market is recovering in your area.
If you’re interested in using the data from the dashboard in your publication, or want to gain further insight into the market, we’d be happy to help. Reach out to: firstname.lastname@example.org
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