Now lockdown is being eased, Dominic Parravani of Durrants answers the sixty-four thousand dollar question about the property market.
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As we gradually emerge from lockdown the first question clients are asking us is how will the coronavirus influence property prices?
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This is something that is hard to answer with any absolute accuracy at this early stage. However the question is a crucial one.
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Much will depend on the shape of the bounce back. If it is V-shaped we can be hopeful for only minor turbulence. However if there is a long tail then recovery prices in specific sectors could be affected.
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While the lockdown has thwarted many plans to move, some people have found that post-virus working life promises the chance of more freedom.
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Many people in future will work from home – the need to commute finally will be over – so a move to a rural or coastal location or to be closer to their families will be possible and even preferable. Many of these buyers will also be looking for properties with work-from-home space; others will want multi-generation family options.
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So we see a great deal of cancelling-out between sectors; which brings us back to price. In this nothing has changed. The first thing an estate agent learns is that whatever the price quoted on a property, it will in the end find its correct level. A property is worth what someone will pay for it. An invisible hand called the market is not affecting property prices; people are affecting them.
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We have sold properties on Christmas Eve. We have sold properties at the very depths of the great recession and in all parts of several boom-and-bust cycles. And even now through the Covid-19 pandemic we have seen sales through to completion.
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No matter what the trend is across the country, throughout this pandemic our area has proved to be resilient and popular. Coronavirus has not altered that.
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So what about prices? In the property sector realism will move us out of this crisis. With a realistic price, a pragmatic attitude to negotiation and a sensible buyer coronavirus will be unable to infect our market. Realism is our vaccine.
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For realistic advice about marketing your property call us today on 01502 723292. We are open for business.

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