New research shows more houses are coming onto the market in the West Midlands after new instructions outpaced buyer interest in February.
RICS UK Housing Market survey, which is published today, shows 34 percent more chartered surveyors reported a fall than a rise in new buyer enquiries and 31 percent more reported a fall rather than a rise in new properties coming on to the market.
Across the UK, for the second consecutive month the new instructions net balance outpaced the new buyer enquiries net balance. Seven percent more chartered surveyors reported a rise rather than a fall in new buyer enquiries, up from a negative 20 percent, while a net balance of 15 percent of surveyors saw a rise in new instructions which compares with a negative balance of five percent in January.
Surveyors within the West Midlands reported prices falling back during February, with 15 percent more reporting a fall rather than a rise in house prices, down from a positive 22 percent in January.
That contrasts with the national findings where 17 percent more chartered surveyors reported a rise across the UK.
Ben Hudson, RICS West Midlands spokesperson and Director of Greenhill & Brownfield, said: “Most market indicators are still positive and consistent with further, but modest, house price increases although these are proving slower to show themselves in transactions within the region. However the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming onto the market is starting to outstrip fresh demand.
“Potential buyers are still waiting to see what happens within the spring market, with the expectation of them returning if conditions are right. Sales continue to be lost due to lenders overly cautious approach to the market.”