Home sales in Wales leap to six-year high as surveyors say buyers are returning ... - WalesOnline

The number of homes sold in Wales during the past three months reached its highest level in six years, according to figures released today.

The results, from the latest Royal Institute for Chartered Surveyors (RICS) Residential Market Survey, were hailed as evidence that buyers across the country are returning to the market.

In the three months to May, chartered surveyors in Wales sold an average of 18 properties. That represents the highest reading since June 2007.

It was predicted the trend will continue for the coming three months with 30% more of the survey's respondents predicting transaction levels will grow.

Tony Filice, RICS Wales Residential spokesperson and director of Kelvin Francis Chartered Surveyors, in Cardiff, said part of the increase was driven by first-time buyers and increased confidence.

He 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."

But in spite of an increase in sales, the actual number of properties coming onto the market took a dive with a net number of -8% of surveyors reporting a rise in new instructions.

That figure was positive (7%) last month and the average housing stocks per surveyor now stands at 103, down from 110 in April.

Prices, meanwhile, edged up last month with 10% more chartered surveyors in Wales reporting increases rather than decreases.

Until recent months price stability had been confined largely to the South East of England and London.

Now it is to be said to be extending to other parts of the country.

But Nigel Jones, of John Francis, Carmarthen, said the market was still two-paced in places with realistic and unrealistic sellers.

He said: "The market is still very price sensitive though, leaving it very two-paced with the have and have nots.

"Those that have interest and offers are those that have their properties priced sensibly.

"Those that aren't priced sensibly are having little interest."

And Delyth Davies of Clee Tompkinson and Francis, Carmarthen, added: "Residential sales are continuing to push forward, but only slowly and are all high maintenance.

"Vendor expectation is still high.

"Realism is often required to get properties sold. Buyers are keen, and know exactly what they want and how much they are prepared to pay."

Elsewhere, the rental market in Wales saw a drop in tenant demand this spring.

Interest from would-be renters fell to a net balance of 21% during the three months to May, from 48% 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% more Welsh chartered surveyors reported rises in new instructions, a significant decrease on the previous quarter's reading of 36%.

RICS housing market survey is the longest running monthly survey of house prices in the UK, collecting data since January 1978.  The survey is cited by the Bank of England's monetary policy committee at its monthly interest rate setting meetings.