Newly released market insight from Landmark Information Group shows that the return to pre-pandemic market conditions started to become apparent in Q2 – with listings above 2019 benchmark levels for two consecutive months (August and September) for the first time in a year.
This, however, does not seem to be filtering through to completions, which according to the latest market data, are down 12% in Q3 2022, compared to 2019.
The data reveals that the market is not yet seeing signs of the impending fall in demand that has been suggested will follow the current economic uncertainty, with demand still stable at the end of the quarter. Supply and demand also became more closely matched across the third quarter of the year, with supply up 5% on September 2019 levels at the end of the quarter.
However, early Q4 data suggests conveyancing and lending processes will come under pressure in the next quarter, in the face of current concerns over mortgage availability and affordability. The newly released report also shows potential signs of the cost-of-living crisis starting to impact consumer confidence, with Q3 SSTC down 2% on last quarter.
Simon Brown, CEO, Landmark Information Group, said: "Whilst Q3 property market conditions show continued return to pre-pandemic levels, they are likely only the ‘calm before the storm’ – with the tail end of the quarter showing signs of headwinds yet to hit.
"The fragmented property transactions pipeline will continue to come under pressure, faced with continued interest rate movement, lending pressures, and an expected drop in demand in early Q4.
"Despite this, the positive increase in supply levels during Q3 could signal a potential reversal of the restricted supply we have seen during the past year. But only Q4 data will be able to tell the full story, as current instability is likely to derail this trend."
