House prices have surged back to pre-March levels, but experts warn of a coronavirus 'hangover' crash.

The property market has seen records smashed this summer with prices jumping in August to the biggest monthly rise in 16 years, according to new figures.

Demand, meanwhile, has been off the scale since the market re-opened in mid-May after a lockdown freeze with house prices hitting an all-time high.

The summer usually sees a lull with people going off on holiday, but 2020 has been a different story.

People are rushing to take advantage of lower mortgage rates and stamp duty cuts

The average home currently costs £224,123, which is 3.7 percent higher than August last year, reports the Daily Mail.

What's more, last month saw the most homes put on the market since 2008, according to Rightmove.

Part of the reason for the market spike is the backlog left from the spring, with sales having been put on hold and then forced through quickly after lockdown.

Experts warn the recession will catch the market by the end of the year

Though many new buyers are taking advantage of chancellor Rishi Sunak's temporary stamp duty cut announced in July, while mortgages are cheaper after the Bank of England cut the base rate to 0.1 percent.

The average time to sell a property, meanwhile, has been slashed from 39 days to just 27 since lockdown, according to Zoopla.?

However, we have to remember that the country is suffering one of the worst recessions in history and most experts agree the housing market will eventually plummet.

Sarah Coles, personal finance analyst at Hargreaves Lansdown said: "House prices seem to be defying gravity but, later this year, we’re likely to find out that the market isn’t flying — it’s just falling with style.?

"Over the next couple of months, as the furlough scheme and mortgage holidays come to an end, jobs will be on the line and borrowers will have incredibly tough decisions to make.

"There are likely to be more forced sellers, a downturn in demand, and the full effect of the crisis will hit the market."

Most experts are estimating house prices will plummet by up to 10 percent by the end of the year once the boom dwindles.