Property prices in the region edged lower in April, as the North East market continues to struggle.
According to the latest RICS UK Housing Market survey, 21% more chartered surveyors reported falls rather than rises in house prices, while expectations for future prices remained at a low level in April.
Despite this, demand from potential buyers increased slightly, as 9% more surveyors reported increases rather than decreases in new enquiries. This level of new instructions is a positive indicator of supply coming onto the market, with 36% more respondents reporting rises in new homes up for sale.
It was expected that the expiry of March’s stamp duty holiday would result in a decline in transaction levels. However, 19% more respondents reported increases in transactions.
London was the only part of the country to witness a rose in prices, which was still at the slowest rate since the middle of 2011. The West Midlands and Wales saw the biggest declines, with net balance readings of -43% and -39% respectively.
RICS North East housing spokesperson, Richard Sayer of Rook Matthews Sayer estate agents said: “Despite the market conditions still being tough, especially with the continuing lack of affordable mortgage finance, we are seeing an increase in activity in the housing market, with the level of instructions and viewings improving.
“However, it is still too early to say whether or not this rise in activity is sustainable.”
Expectations for future prices still remain low, but despite this predictions for future prices have moved into positive territory with a balance of 12% more respondents expecting sales to rise over the coming quarter.