April brought more good news for the Welsh property market as homebuying activities continued their upward trajectory. According to the latest figures from the Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, there’s a clear indication that the market is thriving. For the fifth consecutive month, Wales has seen a steady increase in home sales, driven by a rise in listings and a robust buyer demand.
RICS surveyors provided some optimistic numbers, with 35 percent of them reporting a rise in house sales during April. This consistent growth in the market is backed by an increasing number of new listings and a significant interest from buyers. Additionally, surveyors are feeling positive about the immediate future, with 14 percent predicting sales will continue to climb in the next three months.
New Listings and Buyer Demand
April also witnessed a rise in new buyer demand, with 37 percent of surveyors observing this growth. The supply side is not lagging either, as 47 percent of surveyors reported an increase in new sales instructions—a jump from March’s 41 percent. This growth in both demand and supply is shaping a dynamic market environment in Wales.
Price Adjustments
Despite the positive sales activity, house prices in Wales have seen a slight decline. The net balance of surveyors reporting a drop in house prices over the last three months stood at -8 percent. This could indicate a market adjustment where, despite higher activity, buyers are possibly negotiating harder on prices.
The Rental Market Cools Down
The rental sector in Wales, however, tells a different story. There was a significant decrease in tenant demand, with only 17 percent of surveyors noting an increase compared to 50 percent in March. This softening demand could be influenced by various factors including market saturation and economic considerations.
Sales Market Overview
Anthony Filice, a FRICS qualified surveyor from Kelvin Francis Ltd in Cardiff, highlighted a marked increase in market activities. “There was a marked increase in listings, viewings, and sales agreed across all price ranges, including properties priced over £1,000,000,” he noted. Filice also mentioned that the market offers a wide choice of properties which, if priced sensibly, are selling well. He describes the current state as a buyers’ market, indicating that buyers have the upper hand in negotiations.
Rental Market Challenges
Turning to the rental sector, Paul Lucas, FRICS, of R.K.Lucas & Son in Haverfordwest, pointed out ongoing challenges. “Demand for all types of property remains high amidst dwindling supply,” he stated, adding that many landlords are opting out of the letting market, which could be exacerbating the supply issues.
Economic Influence
Simon Rubinsohn, RICS Chief Economist, commented on the broader economic factors affecting the market. “Feedback to the latest RICS survey demonstrates the sensitivity of the sales market to interest rates at the present time, given the continuing challenge around affordability,” he explained. This suggests that fluctuations in interest rates could have immediate impacts on both buyer behavior and overall market health.