A survey released today has revealed that fewer buyers are actively looking for homes in Wales.
The Residential Market Survey, by the Royal Institution of Chartered Surveyors (RICS) takes data from registered estate agents across Wales to gain a better understanding of the state of the housing market.
The survey shows that more homes came onto the market in June than in May, with a net balance of 16 per cent of respondents saying that their instructions to sell rose in the month.
This is the sixth consecutive survey in which the net balance has been positive, up from a nine per cent rise in May.
However, there was a net drop of 32 per cent in sales through June, with a net balance of six per cent anticipating a fall in sales over the next three months.
There was also a fall in new buyer enquiries with a net balance of 30 per cent of respondents reporting a fall.
Looking at prices, a net balance of minus 40 per cent was reported for prices in Wales the June survey, which is similar to the UK figure of minus 46 per cent.
However, respondents’ expectations are for prices to reduce further over the next three months, with a net balance of 54 per cent of surveyors in Wales anticipating a fall between July and September.
John Caines FRICS of Payton Jewell & Caines Ltd in Bridgend commented: “The market is now more price conscious than previous years, with the impact of higher mortgage rates reflected in achieved selling figures.”
Melfyn Williams MRICS of Williams & Goodwin Tpp Ltd in Anglesey & Gwynedd said: “The property Market continues to be active with property in the right location at the right price selling well. Houses initially priced too high could now result in them selling for less in the long run. It’s important now to price right and choose the best method of sale to suit circumstances.”
Simon Rubinsohn, RICS Chief Economist, commented on the UK picture: “The latest increase in interest rates and the impact this has already had on mortgage rates is clearly visible in the key RICS metrics regarding buyer enquiries, sales and prices which have all retreated over the past month.
“Inevitably in this environment, activity levels are likely to remain relatively subdued. However, an important message coming back from RICS agents is around ensuring prices are set with an eye on the market conditions of today, rather than the recent past; when this is done, sales are taking place.
“It is also worth bearing in mind that house prices are only very modestly down on their recent highs and well above where they stood prior to the onset of the pandemic.
“Further declines are possible but need to be seen in the context of the previous strength in the market. Additional questions included in the latest survey also provide some support for the notion that, on balance, properties with better energy efficiency credentials are holding their value better than some others”.