House prices in Wales continued to edge upwards according to the RICS (Royal Institution of Chartered Surveyors) Residential Market Survey for July, and expectations are for prices and activity to increase over the next three months.
A net a balance of 38 percent of Welsh respondents to the latest survey said that house prices had risen since May. Surveyors are also increasingly optimistic about the short-term outlook. A net balance of 18 percent of Welsh respondents expect prices to rise in the next three months, whilst a net balance of 21 percent expects sales activity to increase.
This follows a relatively quiet July for sales activity according to the survey. New buyer enquiries and newly agreed sales were marginally higher than in June. Supply constraints continue to be a factor, with the number of new instructions reported to be broadly flat.
Looking 12-months head, surveyors remain relatively upbeat, with a net balance of +49 percent of Welsh respondents expecting prices to be higher in a year’s time and a net balance of +21 percent expecting sales activity to rise.
RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, said:
“We have seen a reasonable level of viewings and offers, despite it being the holiday season. At a macro level, the change of Prime Minister may increase economic optimism for the next three months. At a more micro level, a shortage of first-time buyer properties continues to be a challenge to activity, with prices increasing because of demand outstripping the supply.”
The main findings of the latest survey for Wales were as follows (all figures indicate the net balance of respondents):
- The headline price balance was +38% in the latest survey, indicating that house prices rose.
- The price expectations balance for the next three months was 18% suggesting that respondents expect prices to rise.
- The sales expectations was also in positive territory, at +21%.
- New buyer enquiries rise marginally in July , according to the balance of respondents (+6%)
- The balance for newly agreed sales was 5%.
- The number of new properties coming onto the market was broadly flat, according to the net balance for new instructions (3%)
A net balance of +49% of survey respondents expects house prices to rise in the next 12 months