Housing market exercise in Wales remained weak final month with falls in purchaser demand and agreed gross sales in response to the most recent RICS Residential Market Survey. Nonetheless, extra houses have been reported by respondents to be coming onto the marketplace for sale.
A internet steadiness of -46% of Welsh respondents was reported for brand spanking new purchaser enquiries in February, indicating sharp falls in demand. In the meantime a internet steadiness of -52% of respondents was recorded for newly agreed gross sales.
Taking a look at provide, a internet steadiness of +12% of respondents was reported for directions to promote, the second month in succession that respondents noticed extra houses being listed on the market.
Surveyors although stay cautious of their outlook for the subsequent three months. The web steadiness for value expectations in Wales is now -34% of respondents, and for gross sales expectations it’s -44%. Respondents in Wales are much less pessimistic about exercise on a 12-month horizon although. The web steadiness for gross sales expectations over the subsequent yr is zero, pointing to a flat gross sales image in 2023.
Commenting within the report, Anthony Filice FRICS of Kelvin Francis, Cardiff, stated:
“The numbers of viewings are fewer, however these wanting are critical. A wholesome variety of gross sales are due to this fact being agreed, many at full asking costs, or close to.”
Melfyn Williams MRICS, of Williams & Goodwin The Property Folks in Anglesey & Gwynedd, stated:
“Wanting ahead to Spring market after we anticipate the standard time of yr for an upturn in exercise. The market as anticipated although is extra value delicate now.”
Tarrant Parsons, Senior Economist, commented:
“The housing market continues to regulate to the tighter lending local weather, with stretched mortgage affordability nonetheless weighing closely on exercise.
“Given the continued weak spot in demand, home costs stay on a downward trajectory, and are anticipated to see additional falls via the primary half of the yr not less than.
“Going ahead, near-term expectations recommend market exercise will stay usually subdued over the approaching months, though the most recent survey suggestions reveals tentative indicators that the continued decline in purchaser enquiries is now moderating”.
