Strong Demand Pushes Sales Expectations Higher
• Headline price net balance reaches its highest level since mid-2002
• Near term price expectations positive across all regions except the North
• Sales to stock ratio highest since October 2007
The October RICS Residential Market Survey shows the improvement in market conditions is becoming more widespread. The pace of demand exceeded that of supply in every part of the
country, pushing up prices.
At the national level, the gap between demand and supply, as measured by our net balances, is now at its greatest since May 2009. This is helping to drive price expectations, which at the three month horizon are positive across all regions except the North (while they are positive for all regions at the
twelve month horizon). Sales expectations have also been buoyed by the recent surge in demand,with the net balance climbing to its highest value on record.
Regionally, London and the South East remained the strongest performers with price momentum
firmer across these areas than elsewhere and with respondents more confident of future price increases than any other region.
Locally the uplift experienced since August continued although surprisingly half term week was quiet!!! Agreed sales were outnumbered new instructions but the latter is not unexpected for this time of the year. The Government’s Help to Buy scheme is having some effect although there are not many opportunities for first time buyers in the Swanage area.
Historically it is less busy through the winter months, particularly in November and December but hopefully January may see a return to a more buoyant market so it will be interesting to see
what happens on price levels.
Although confidence continues, buyers are generally not prepared to pay some of the optimistic prices being set so it remains important to be realistic with pricing.
Please do not hesitate to contact me should you wish to discuss any matter regarding the marketing of your property.
Oliver Miles FRICS EBEng
RICS Registered Valuer