RICS Housing Market Survey shows signs that confidence is returning to the property market

RICS Housing Market Survey shows signs that confidence is returning to the property market

The RICS Housing Market Survey February 2012 was released today.  The results seem to show a more optimistic view of the performance of the housing market over the next few months.  

The net price balance for February was -13.  This means that 13% more surveyors recorded price falls than price rises.  However, the wider picture shows that 68% of surveyors saw no price change.  This is the highest proportion showing no change since March 2010.  Where surveyors reported price falls, 84% saw a drop of less than 2%.  The overall picture shows a stabilisation of prices.

The average number of sales per surveying firm increased from 15.7 to 16.  This is a rise of 3.7%.  This is still well under the long run average of 25.9.  Average stock levels per surveying firm have fallen by 3.7%.  

Price expectations by surveyors are positive.  The number of surveyors expecting a price increase in 12 months has risen from -4 to +11.  This is the first positive result since May 2010.

The situation in London is still the only part of the country reporting price rises and is the area showing the biggest increase in price expectations.  The West Midlands shows the biggest price falls.   

Anecdotal evidence from surveyors does suggest that part of the increased activity of the market is due to short term measures like the Stamp Duty holiday for first-time buyers.  However, the more optimistic expectations of the medium and long term suggests that there are other factors.  It could be that surveyors are beginning to perceive that the downside risk to the economy has lessened.  

This survey, along with the CML Mortgage Survey which was also released today, seems to show a growing optimism for the performance of the property market, at least over the medium term.  

General News

Leave a Reply

Your email address will not be published. Required fields are marked *