The number of newly agreed home sales in Wales rose through April according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, as there are some signs of optimism for the Welsh housing market in the coming months.
A net balance of 31% of respondents in Wales reported that sales increased in the most recent survey. This is the highest balance across all UK regions, and is up from the -3% that was seen in the March survey.
And looking ahead, a net balance of 7% of surveyors expect sales to rise over the next three months. This is up from the net balance of -5% that was seen in the survey previous.
Looking at pricing, a net balance of -5% of Welsh respondents report a fall in house prices over the past three months. This follows a period of three consecutive months where this balance was in positive territory.
But looking ahead respondents in Wales appear more optimistic. A net balance of 7% of surveyors in Wales anticipate that prices will rise over the next three months, which is up from the -5% that was seen in the report previous.
On the supply front, surveyors in Wales report that new instructions to sell fell broadly flat through April.
Whilst supply was subdued, demand rose. A net balance of 9% of Welsh surveyors reported that new buyer enquiries increased through April, which follows the three consecutive months where this balance was in negative territory.
Commenting on the sales market, Anthony Filice of Kelvin Francis in Cardiff said:
“There has been a steady flow of new instructions and a healthy number of sales being agreed, when correctly priced. Lower offers are being received on £1,000,000 plus properties, perhaps reflecting uncertainty in the economy. A wide range of properties are available.”
Commenting on the UK picture, RICS Head of Market Research & Analysis, Tarrant Parsons, said:
“April’s results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict. Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers. Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”
