The Property Market is still alive
Everywhere in the world or I mean in most places the property market is up. Things may start slowing down now as we enter the Winter season. It would be interesting to see what happens for the spring bounce next year.
Q From Abed: Why is the property market still going up despite the current situation?
I think there's a couple of reasons why and this is not just the UK but this is actually a lot of property markets that are going up. The US you know that sort of thing we have printed we've increased the money supply by about 30% that liquidity has to go somewhere and where is it going a lot of it's going into property.
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It's a very different market in Scotland, it's a smaller market. There's some fundamental changes namely oil and gas with all the issues there and that I know Aberdeen and a few of those places house prices have dropped considerably. So, it depends on how that's reacted.
But also we've dropped the interest rates to rock bottom. We've stimulated you know various bits and pieces you know at a base level certainly in the UK. Not only that with the UK in particular we've had austerity layered with Brexit so things have been you know kept down and all of a sudden Boris has come in and said no no we're getting rid of austerity we're now doing stimulus and as well people have got a decision whether you know whether you're for or exit you know against Brexit.
The fact that we've got one way overwhelmingly one way just almost said everyone went ah thank goodness and so that's what we're seeing and everyone went ah thank goodness and then Covid hit and it was like oh but so now we've had it drop up and that's the reason why you know we're seeing that that um that's still increasing. But things things will say that things will slow down now because you know if we're coming into Christmas you know we're not you're not going out it's not as lively that all that stuff plus with a second wave and things like that so we'll you know let's see what happens over Christmas and then we'll see what happens with the spring bounce next year.
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BRETT: sorry mate you're going to say
DAN: I was going to say on that point about the property market going up. You've got the number one you've got the pent-up demand because we've been willing to lock down for four months and during that time it was a complete shutdown so there's no contradiction of supply and demand. That coupled with the stimulus like you said you know the stamp duty that we've depend on demand together is what they've seen sort of prices or transactions keep going to a high volume and therefore that's why the price has been going up as well.
BRETT: Yeah 100%
Q From Abed: Why is the property market still going up despite the current situation?
I think there's a couple of reasons why and this is not just the UK but this is actually a lot of property markets that are going up. The US you know that sort of thing we have printed we've increased the money supply by about 30% that liquidity has to go somewhere and where is it going a lot of it's going into property.
But also we've dropped the interest rates to rock bottom. We've stimulated you know various bits and pieces you know at a base level certainly in the UK. Not only that with the UK in particular we've had austerity layered with Brexit so things have been you know kept down and all of a sudden Boris has come in and said no no we're getting rid of austerity we're now doing stimulus and as well people have got a decision whether you know whether you're for or exit you know against brexit. The fact that we've got one way overwhelmingly one way just almost said everyone went ah thank goodness and so that's what we're seeing and everyone went ah thank goodness and then Covid hit and it was like oh but so now we've had it drop up and that's the reason why you know we're seeing that that um that's still increasing. But things things will say that things will slow down now because you know if we're coming into Christmas you know we're not you're not going out it's not as lively that all that stuff plus with a second wave and things like that so we'll you know let's see what happens over christmas and then we'll see what happens with the spring bounce next year.
BRETT: sorry mate you're going to say
DAN: I was going to say on that point about the property market going up. You've got the number one you've got the pent-up demand because we've been willing to lock down for four months and during that time it was a complete shutdown so there's no contradiction of supply and demand. That coupled with the stimulus like you said you know the stamp duty that we've depend on demand together is what they've seen sort of prices or transactions keep going to a high volume and therefore that's why the price has been going up as well.
BRETT: Yeah 100%
