House sales in Wales hit 6 year peak

The amount of homes sold in Wales over the past three months reached its highest level in six years as buyers across the country continue to return to the market,says the latest RICS residential market survey (11 June 2013).

Chartered surveyors in Wales sold on average 18 properties during the three months to May, representing the highest reading since June 2007.  Furthermore, sales are expected to continue their rise over the next three months with a net balance of 30 percent more respondents predicting transaction levels will grow rather than fall (from +25 percent).

Despite an increase in sales, the number of properties coming on to the market took a dive with a net balance of - 8 per cent of surveyors reporting a rise in new instructions.  The figure stood at +7 percent last month.  Average stocks per surveyor now stand at 103, down from 110 in April.

Meanwhile, prices up edged last month with ten percent more chartered surveyors in Wales reporting increases rather than decreases. Until recent months price stability has been confined largely to the South East of England and London, whereas now this is beginning to extend to other areas of the UK.

Differentiating from the sales market in Wales, the rental market saw a drop in tenant demand this spring. Interest from would-be renters fell to a net balance of 21 percent during the three months to May (from +48 percent in April). In tandem with the fall in demand, a decreasing number of landlords placed their properties on the market during the last quarter. A net balance of just 4 percent more Welsh chartered surveyors reported rises in new instructions, a significant decrease on the previous quarter’s reading of 36 percent.

Tony Filice, RICS Wales Residential spokesperson and Director of Kelvin Francis Chartered Surveyors, Cardiff, said:

“Demand in the ‘First Time’ buyers market is now exceeding supply, leading to full prices being achieved.  This is already filtering through to the middle market and will hopefully filter to the upper levels in due course.  Confidence is high with the general public who feel that now is the right time to buy, complimented with the right choice of mortgage product at favourable rates.  Green shoots are now flowering.”