More homes are coming onto the market in Wales, but fewer buyers are actively looking to purchase, according to the latest Royal Institution of Chartered Surveyors (RICS) residential market survey.
The survey found that a net balance of 18% of property professionals in Wales reported an increase in instructions to sell last month – the fourth consecutive survey to report an increase. A net balance is calculated by the proportion of property professionals reporting a rise in prices minus those reporting a fall.
New buyer enquiries and newly agreed sales continued to fall. Anecdotally, Welsh property professionals said correctly priced properties continued to sell. A net balance of -15% reported a fall in sales through April, while -59% saw a fall in new buyer enquiries.
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Property professionals said they were not optimistic about the three-month outlook for activity either with a net balance of -19% of respondents anticipating a fall in sales.
In terms of house prices, property professionals expect prices to reduce further over the next three months. Surveyors are even less optimistic on the outlook when compared to the UK average where -48% of respondents expect prices to fall over the next quarter.
Surveyors in Wales are also less positive about the 12-month outlook compared to UK counterparts, with both sales and prices expected to ease back.
Anthony Filice of Cardiff’s Kelvin Francis said: “The spring market shows an uplift in listings and greater choice for buyers. Vendors who take advice on value are selling swiftly. However, many vendors have not revised their expectations and need to reduce price within weeks. Buyers are taking time offering, with increased choice and sales are being agreed.”
Melfyn Williams, from The Property People in Anglesey and Gwynedd, said: “Spring has sprung. Correctly priced property is attracting interest and is selling. Whilst not all stock is flying off the shelf, with proactive marketing, results are being achieved. Auction sales also remain a popular option for the right circumstances and property. Normal market, with normal activity.”
Simon Rubinsohn, RICS chief economist, said: “Although the news flow around housing does appear to have steadied over the past month, key indicators from the RICS survey point to a series of challenges in both the sales and letting space. Most notably, buyer demand still appears to be subdued in the face of relatively high borrowing costs, the prospect of at least one more interest rate hike and ongoing affordability challenges. Meanwhile, the imbalance between demand and supply in the letting market still remains stark despite the significant increase in rents.
“Critical to addressing both areas of the market is the delivery of more supply. However, indicators of the level of new housing starts in the early part of the year suggests that the picture is if anything continuing to soften as housebuilders activity reflects both macro uncertainty and policy developments”.
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