Originally Posted by PropQueries
But wouldn't that just result in a zero-sum i.e. if someone sells to buy another home, the two homes just cancel each other out and has no impact on the supply/demand dynamic.
If that reason is true and it does make sense, the reduction in supply is probably not as big a deal as many believe. It basically just leaves the FTB in the market and that should result in them getting better deals as they're the only buyers around (if that reason is true).
I think it's safe to assume there is a growing number of FTBs and a dwindling number of houses for sale.
The longer lockdown goes on, the greater the number of FTBers. If you've decided to buy a house as a FTB it's very unlikely you'll change your mind, it takes years of saving/prep.
If I own a house I want to sell and lock down happens I might pull it back, it's a far easier process.
The pool of FTBers is only getting bigger and I think covid will create more as people realise the importance of their own space.
Demand > Supply