Demand from new buyers slowed through April according to the latest Royal Institution of Chartered Surveyors (RICS) residential market survey, albeit surveyors expect that sales will continue to rise in the coming months.
A net balance of -10% of NI respondents noted a fall in new buyer enquiries in April, which is the lowest this balance has been in nearly a year. But although in negative territory, it is still the third highest balance across all other UK regions behind Wales and the North West.
Supply levels improved through April according to the survey. A net balance of 32% of NI respondents reported a rise in new instructions to sell, the highest in the UK. Though this was not as positive as the 46% that was seen in the March survey.
The sales balance also remained steady, with a net balance of 18% of Northern Ireland respondents noting a rise in sales over the past three months.
And this upward trajectory is expected to continue. A net balance of 28% of NI respondents are expecting a rise in sales over the next three months, which is up from the 23% seen in the survey previous.
When it comes to pricing, surveyors in NI continue to report that house prices have risen over the past three months. In the March survey, surveyors were almost unanimous that house prices had risen, whereas in this most recent survey for April, this balance has come down slightly though still strongly positive, with a net balance of 72% of NI respondents noting a rise in house prices over the last three months.
Looking ahead, a net balance of 44% of respondents expect house prices to rise over the next three months, which is down slightly from the net balance of 47% seen in the survey previous.
Samuel Dickey, RICS NI Residential Spokesperson, said: “Despite clear headwinds, the NI housing market remained resilient in April, with prices still rising and sales activity still positive according to the survey. It’s also encouraging to see that respondents on balance are optimistic that both sales and prices will continue to rise over the coming months. Although surveyors are reporting a softening in demand through April, this is off the back of a steady first quarter of the year and is perhaps as expected with some uncertainty in the wider economy.”
Commenting on the UK picture, RICS Head of Market Research & Analysis, Tarrant Parsons, said: “April’s results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict. Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers. Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”