deVere Investor Insight - Q2 2020

The UK housing market is responding in similar fashion. Due to the illiquid nature of property as an asset class and the fact that investors cannot ‘panic sell’ property in the same way they can stocks, it is harder to find meaningful data on the short-term impact of COVID-19 on house prices. Additionally, under the current lockdown situation, transactional based indices cannot offer a true reflection of price movement. A recent report from the UK’s largest online real estate portal and property website, Rightmove, has however stated that property enquires jumped 120% in the week since the real estate market emerged from its coronavirus lockdown. What’s even more significant for both landlords and prospective investors, only 1% of properties up for sale have been reduced in price. COVID-19 continued... Investor Insight // Q2 - 2020 36 We are living in a time where the market seems to be changing on a daily basis, the early signs however, are positive, as the governments begin to ease lockdown restrictions. In June, the S&P 500 turned positive for the year after initially tumbling more than 30% from its all-time highs, when concern over the virus was at its peak. The rebound was largely attributed to confidence about the reopening of the U.S. economy as well as significant government stimulus. Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 3000 2200 3400 2400 2600 3200 2800 Dec. 31, 2019 Close: 3230.78 S&P 500 Down 34% from peak June 16, 2020 Close: 3124.74 Source: FactSet S&P 500 Index

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