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Supply limits house price falls
The Royal Institute of Chartered Surveyors house price balance for April showed and increase in the number of its members reporting house price declines. Showing a drop for the ninth month in a row the latest figures showed that 95.1% more Chartered Surveyors reported a fall than a rise in house prices which was an increase from 79.4% in March.
The feeling from RICS is however that the rate of decline has been limited due to ongoing limited supply of housing stock. Shortages of new instructions, as homeowners decide to stay rather than go, together with circumstances such as historically good economic conditions has lead to some price resistance.
There is a feeling that auction property volumes, fuelled by repossessed or “fire sold” to avoid repossession property could cause a supply correction. However, RICS feels that the market is not yet seeing the impact of this factor.
