Measures of buyer demand in the property market continue to show a positive trend, with new buyer enquiries showing a slight increase in demand, although sales themselves appear to have stabilised in the last month. This suggests that the desire to buy property continues despite the current economic challenges. On the other hand, the National House Price Index continues to record notable increases, reflecting the growing interest in investing in the property sector.
The outlook for real estate activity in the near future is somewhat positive.
despite the recent increase in mortgage interest rates. This increase is expected to have a slight impact on the purchasing power of buyers.
but expectations still indicate that the market will continue to grow modestly. On the other hand, house prices remain on an upward trend, reflecting a continued increase in property values in many areas. These factors indicate that the property market is showing signs of stability despite the economic challenges that may arise.
According to the results of the November 2024 Residential Survey conducted by the Royal Chartered Surveyors.
indicators show that the upward trend in the property market continues. There has been a significant increase in demand from first-time buyers.
and the data also showed an increase in new instructions received from sellers. This improvement in supply and demand reinforces the stability of the market and confirms the optimistic outlook for the coming period.
Despite the rise in mortgage interest rates in recent weeks, respondents to the survey expect a slight improvement in sales activity in the near future. However, these expectations have been reduced compared to the previous survey, indicating increased caution due to economic factors that may affect real estate investments.
Demand across the sales market
In terms of demand trends across the sales market, the new buyer enquiry series showed a headline net balance reading of +12% in November.
almost the same as last month (+11%). This indicates a continued slight uptick in buyer demand, reflecting the fifth consecutive positive monthly reading for this metric. From these figures, there appears to be relative stability in buyer interest in the market.
At the same time, the net balance was recorded at +1% in the agreed sales metric.
a slight decrease compared to the previous figure of +8%. However, these figures suggest that overall sales activity remains largely steady.
with only minor fluctuations in the level of overall sales. This relative stability suggests that the market has not seen any dramatic changes over the course of the month.
Furthermore, +19% of survey respondents expect sales activity to grow positively over the next three months. Although this is slightly down from the +30% forecast in October, the outlook remains somewhat optimistic about improving activity in the coming period. This slight change in expectations is a sign that the market may face temporary challenges that could impact demand in the short term.
In the long term, expectations suggest that the market may see a recovery in sales. A net balance of +33% of respondents expect market activity to recover in the next 12 months. However, this is not as optimistic as in previous months, with this being the lowest since April. However, many remain optimistic that the market will regain momentum, despite recent economic volatility.
The market may see a slight recovery in the coming months
It is noted that forward-looking analysis indicates that the market may see a slight recovery in the coming months. However, economic developments should be closely monitored to ensure that activity remains stable in the near term. Despite these expectations, the real estate market remains subject to the impact of various economic factors, including interest rates and general economic trends.
In terms of supply, new listings continue to rise, with the net balance reading recording +17% of respondents in November, a slight increase from +14% last year. This indicates continued momentum in the flow of new listings into the market.
with this being the fifth consecutive month that new listings have recorded an increase in volume.
However, survey respondents noted that the level of market assessments conducted during the month was generally in line with last year. This is a contrast to the strong positive readings that have been prevalent in recent months. This change suggests that the pipeline of new listings may begin to stabilize in the coming months.
which could lead to a slowdown in the rate of increase in new listings entering the market.
Meanwhile, a net balance of +25% of respondents reported an increase in house prices at the overall level in November, a significant increase from the +16% reading in October. This shows the upward trend in house prices that has been ongoing for the past four months.
after stabilising at negative levels of -16% in July. This continued increase shows that property market is still seeing price increases, reflecting the relative stability of the market despite the economic challenges.
When analysing this price increase, it is clear that almost all parts of the UK are seeing house prices rise. However, certain areas have seen stronger growth than others, such as Northern Ireland, the North West.
