The house price balance in Wales is the lowest it has been in a decade, new data reveals. According to the Royal Institution of Chartered Surveyors (RICS), a net balance of -37% was reported for prices in its latest residential market survey - the lowest since October 2012.
The house price balance is calculated by the proportion of Welsh property professionals reporting a rise in housing prices minus those reporting a fall. A negative net balance implies that more respondents are seeing decreases in house prices than increases.
This suggests that house prices are lower than they were three months ago, with Welsh property professionals expecting house prices to reduce further over the next three months before recovering during the rest of the year.
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On a 12-month outlook, a net balance of +16% of property professionals in Wales expect prices to rise.
Buyer demand in Wales continued to fall last month as did house sales. Those surveyed expect sales to reduce further over the next three months, but bounce back in 12 months time.
The number of fresh property listings coming onto the market rose for the third consecutive month in March with the net balance for new instructions to sell at +15%. This increased supply comes after a lengthy period when respondents indicated that supply was constrained.
Anthony Filice FRICS of Kelvin Francis in Cardiff said: “Sales are taking place where vendors take advice on value. Some vendors’ expectations are still unrealistic though. With the Easter market, some are listing as seasonally expected. Viewers are taking two to four weeks to decide, as there is more choice and less pressure. Fewer first-time buyers are registered.”
Melfyn N Williams, MRICS of Williams and Goodwin, The Property People, in Anglesey & Gwynedd, said: “The first quarter of the year has already passed as we head towards the traditional upturn of the Spring market. Sentiment appears to be improving, with correctly priced property attracting interest.”
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