House prices edged upwards in Wales during July, but the rate of growth continues to slow, the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey suggests.
The balance of surveyors reporting rising prices is now at its lowest level in two years. Surveyors also pointed to lower levels of newly agreed sales than in June, fewer new buyer enquiries, and continuing falls in the number of properties becoming available for sale.
Confidence in the outlook for the market in Wales has also eased back, with a broadly flat outlook for both prices and sales in the next three months, according to data from respondents.
The latest survey marks the beginning of the second half of the year, and the picture presented is much more subdued one than six months previously, when surveyors were reporting strong price growth and were confident in the outlook for prices and sales.
RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff,Tony Filice FRICS, says:
“Brexit nervousness and concerns over the economy are having an impact on the market, unlike 12 months ago. Prices in the lower price bands are stabilising, and indeed, prices below asking price are now being achieved. We have also seen a slowing in viewing activity, albeit that the hot weather and holidays are certainly a factor.”
The survey’s key findings:
- The headline price balance for Wales was +15% in the latest survey, meaning that 15% more surveyors said that prices rose in the past three months than those who said they fell.
- The price expectations balance, at +2%, suggests that prices can be expected to be broadly flat in the three months ahead. The sales expectations balance was at -3%, again suggesting a broadly flat outlook.
- The new instructions to sell balance was at -29%, suggesting that the number of new properties coming onto the market was lower in July.
- Meanwhile, the newly agreed sales balance was at -17% suggesting that the number of newly agree sales fell. New buyer enquiries also declined, according to the net balance (-17%) of respondents in Wales.