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Housing transaction levels hold up well in Q4

Housing sales in the region remained firm in December as more houses came onto the market, accoridng to the latest RICS survey.

In Q4 of last year, each surveyor in the region completed an average of 14 sales. Sales expectations for the next 3 months have now risen to a net balance of 10%, up from -12%.

New instructions have seen an increase, with 21% of respondents reporting rises rather than falls in new homes coming to market. Significantly, the increase in supply in the region is at its highest level since September 2010.

House prices fell in December, albeit at a slower rate than in previous months, with 6% of surveyors witnessing a fall in prices rather than a rise, alothugh London was the only part of the UK to see any price increases.

While sales remained broadly flat, 8% more respondents said that buyer enquiries decreased rather than increased, a marked change from 43%.

Richard Sayer, RICS spokesperson and director of Rook Matthews Sayers, commented: “It was encouraging to see sales activity hold up relatively well in the North East towards the end of the year.

“However, continuing problems with the economy seem to be weighing heavily on the housing market and, although expectations for activity levels are cautiously optimistic, price predictions for the coming months are fairly subdued.”

Looking forward, chartered surveyors expect transaction levels to increase, but 32% more respondents expect prices to fall rather than rise over the next 3 months.

“The increasing number of prospective sellers who placed their homes on the market in December is a positive development, but it is important that vendors are realistic in their pricing if they wish the sale to go through in good time.” He added.

This was posted in Bdaily's Members' News section by Ruth Mitchell .