Welsh House Prices Down but Property Market Looking Up!

Despite house prices dipping in Wales in July, demand from buyers and the number of properties coming onto the market are both on the up, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.

This positive trend has led property experts to predict a rise in the number of house sales over the next three months.

Prices Fall But Remain Steady

The survey revealed a 20% drop in house prices in Wales during July.
This mirrors the UK average, with a 19% fall recorded across the nation.
Looking ahead, a significant 34% of surveyors predict prices will continue to fall over the next three months. This is the most pessimistic outlook since October 2023.

Demand and Supply on the Rise

Despite the price dip, buyer demand is increasing, with 28% of surveyors reporting a rise in new buyer enquiries.
This positive trend places Wales as the third most popular region in the UK for house hunters, only surpassed by the North West and Northern Ireland.
In a welcome boost for buyers, the number of properties coming onto the market also increased. 28% of surveyors reported a rise in new instructions to sell, a significant jump from the -31% recorded in June.

Sales Set to Soar

With both supply and demand increasing, sales are also predicted to rise.
13% of surveyors reported an increase in sales during July, and a promising 16% expect this upward trend to continue over the next three months.

Lettings Market Update

The rental market in Wales also saw an increase in demand, with 33% of surveyors reporting a rise.
However, this demand is outstripping supply, with 33% of respondents noting a decrease in available rental properties.
This imbalance is likely to push rents upwards, with 17% of surveyors predicting rent increases in the coming months.

Expert Opinions

Commenting on the Welsh property market, Anthony Filice of Kelvin Francis Ltd. in Cardiff shared, “Even during the holiday season, viewings, offers, and sales have remained steady. While some sellers are waiting for September, others are regretting refusing good offers received earlier. There’s a growing confidence among buyers that mortgage rates will ease.”

However, Paul Lucas of R.K.Lucas & Son in Haverfordwest offered a more cautious perspective, stating, “The market remains sluggish, largely due to the current economic uncertainties.”