The number of new homes coming onto the housing market in Wales and the number of potential buyers looking to purchase fell through June, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, but Welsh surveyors are more optimistic about the outlook over the next few months.
A net balance of -35% of respondents in Wales reported that new instructions to sell had fallen in the most recent survey.
Demand was also muted through June. A net balance of -15% of Welsh surveyors reported that new buyer enquiries fell in the most recent survey, falling even further into negative territory from the net balance of -8% that was seen in the May survey.
And with demand and supply both subdued, unsurprisingly, so were newly agreed sales. A net balance of -8% of surveyors reported that newly agreed sales fell. Although in negative territory, it is up from the net balance of -20% that was seen in the survey previous.
Looking at pricing, there was a similar trend evident, with a net balance of -20% of Welsh respondents report a fall in house prices over the past three months.
But looking ahead, Welsh surveyors are more optimistic. A net balance of 15% of surveyors expect sales to rise through the third quarter of this year.
And again similarly to sales, surveyors in Wales expect prices to rise over the next three months. A net balance of 10% of respondents anticipate prices rising through Q3, which is up from the net balance of -17% that was reported in the May survey.
Commenting on the sales market, Anthony Filice FRICS of Kelvin Francis Ltd in Cardiff, said that one of the trends he was seeing was of some properties being over-priced which was slowing down the number of agreed sales.
Meanwhile, David James FRICS, of James Dean in Brecon said that whilst the sales market was holding up for better properties, some properties were “tough to sell”.
In regard to the rental sector, he noted that there is “still a strong demand for rental properties.”
Commenting on the UK picture, Tarrant Parsons, RICS Head of Market Research and Analysis, said: “June’s survey results offer some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass, with several key indicators moving in a less negative direction for a second consecutive month. That said, any nascent improvement remains fragile and is now being tested by renewed political uncertainty on the domestic front.
“While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment, even if the recent decline in oil prices is a welcome development. Until there is greater clarity over both the political backdrop and the path of interest rates, housing market activity is likely to remain relatively subdued in the near term.”
