The number of new homes listed for sale has increased for the first time in 12 months, potentially taking some of the heat out of a surge in house prices, according to the latest RICS Residential Market Survey.
RICS said there was an 8% rise in the volume of respondents reporting a rise in the volume of fresh listings coming onto the sales market last month. New buyer enquiries also rose in March month-on-month with 9% of respondents reporting an increase.
This is the first time since the pandemic that the survey metrics for supply and demand have been so closely in line.
RICS said +74% of its members reported a rise in residential property prices last month, easing off from February’s revised +78%.
But despite the uptick in the number of new listings becoming available, the average number of properties on estate agents’ books remains close to historic lows, while property prices continue to rise, with further growth anticipated in the near term
Looking over the next five years, contributors to the survey expect house prices to increase by around 4% per annum.
RICS chief economist Simon Rubinsohn said: “Despite mounting concerns about both the macro environment and the war in Ukraine, for now the feedback to the RICS survey shows the housing market remains resilient. Rising interest rates have begun to push up the cost of mortgage finance but debt servicing remains low in a historic context which helps to explain why the new buyer enquiries indicator remains in positive territory.
“Meanwhile, it is encouraging that a little more stock appears to be returning to the market. This is still early days in that inventory remains not far off historic lows but if the trend continues, it could help to create a better balance between supply and demand. That said, there is little evidence of this outcome materialising in the twelve-month metrics which continue to point to further increases in prices and a flatter pattern in transactions.”