A new report has revealed that the house price balance in Wales is at its lowest point in more than a decade.
The latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, released today, reports that a net balance of 37 per cent of property professionals saw house prices drop in March.
RICS takes the percentage of postive responses (reporting an increase in house prices) and subtracts the negative responses (reporting a fall in house prices) to calculate the net balance, thereby giving an overview of what property professionals across the country are experiencing.
This month's net balance is the lowest that the price balance has been for Wales since October 2012, meaning that house values are lower than they were in the last quarter.
Respondents expect the prices to fall further over the next three months, but a net balance of 16 per cent expect prices to bounce back within the next year.
Demand for homes was also low, but had dropped less than in February’s report, with a net ten per cent believing that sales will be higher in the next twelve months.
Respondents also noted a rise in the number of properties being listed for sales, with a net balance for new instructions sitting at 15 per cent, rising for the third consecutive month.
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.”