In the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, the house price balance for Wales is now at its lowest in over 10 years.
However, respondents expect values and sales to recover somewhat over the next 12 months.
A net balance of -37% of respondents was reported for prices in the March survey, the lowest the price balance for Wales has been since October 2012. This suggests that values are lower than they were three months ago. And respondents’ expectations are for prices to reduce further over the next three months before recovering during the rest of the year. On a 12-month outlook, a net balance of +16% of respondents in Wales expects prices to rise.
It is a similar story with regard to demand, with the survey’s indicators for both sales and new buyer enquiries in negative territory in the latest report. However, less so than in the February survey. And whilst respondents expect sales to reduce in number over the next three months, they expect them to be higher in 12 months’ time (a net balance of +10% of respondents).
Encouragingly, respondents again noted a rise in the number of properties being listed for sales. The net balance for new instructions to sell was +15% in the latest report, the third month that new instructions were seen to be rising. This increased supply comes after a lengthy period when respondents indicated that supply was constrained.
Anthony Filice, FRICS, of Kelvin Francis in Cardiff said:
“Sales are taking place where vendors take advice on value. Some vendors’ expectations are still unrealistic though. With the Easter market, some are listing as seasonally expected. Viewers are taking two to four weeks to decide, as there is more choice and less pressure. Fewer first-time buyers are registered.”
Melfyn N Williams, MRICS of Williams and Goodwin, The Property People, in Anglesey & Gwynedd, said:
“The first quarter of the year has already passed as we head towards the traditional upturn of the Spring market. Sentiment appears to be improving, with correctly priced property attracting interest.”
