Sales of new homes have increased for fourth month in a row

SALES of new homes increased for a fourth consecutive month across Wales as buyer demand and new instructions also rose, according to the February 2020 RICS UK Residential Market Survey.

The February survey in Wales revealed a net balance of plus 21% of respondents saw an increase in new buyer enquiries over the month, the fourth period of growth in a row, agreed seeing sales also continue to rise.

In addition, experts are forecasting a better sales outlook for the next three months, with plus 11% of survey participants saying they expect more homes to be sold.

New homes coming onto the sales market also nudged up for a third straight month, with new instructions seeing a net balance increase of plus 9% in February.

Strong demand has also seen prices increase in February, with a net balance of +17% of contributors reporting house price growth.

Additionally, a net balance of 15% are expecting house prices to continue to rise further over Spring.

However, concerns have been raised by property professionals about the impact of coronavirus which although yet unknown, could adversely affect viewings and the traditional spring house selling season.

Simon Rubinsohn, RICS chief economist, said: “It is encouraging that the results of the latest survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents.

“Indeed, this is the first time since 2014 that new supply to the market on the RICS indicator has increased for three consecutive months.

“Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.

“For now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”