House prices in Wales edged upwards during August, the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey suggests, but data relating to sales activity and the number of properties coming onto the market remained subdued.
The net balance of surveyors reporting rising prices (+39 per cent) picked up from July, but respondents reported a fall in newly agreed sales for the second consecutive month.
A key factor in the market in Wales is the constrained supply, with a higher proportion of surveyors saying that there were fewer instructions to sell in August than in any UK region.
However, despite the subdued sales picture and constrained supply, surveyors in Wales remain relatively optimistic about the short-term outlook.
A net balance of +22 per cent of respondents expect prices to rise over the next three months and a net balance of +34 percent expect sales to increase in the same timeframe.
RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, says:
“During August, we saw fewer viewings of properties, but those that have taken place are more serious and sales are being agreed.The number of new instructions eased back during the course of August, however, as we move further into September, we should see them pick up again. This should help increase sales activity in the months ahead.”
The main findings of the latest survey
The headline price balance for Wales was +39% in the latest survey, meaning that 39% more surveyors said that prices rose in the past three months than those who said they fell.
The price expectations balance, at +22%, suggests that prices can be expected to rise in the three months ahead. The sales expectations balance was at +34%, again suggesting a positive short-term outlook.
The new instructions to sell balance was at -41%, suggesting that the number of new properties coming onto the market was lower in July.
Meanwhile, the newly agreed sales balance was at -15% suggesting that the number of newly agree sales fell. New buyer enquiries also declined, according to the net balance (-3%) of respondents in Wales.