Housing supply puts pressure on prices
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The rate at which homes are coming onto the market is outpacing growth in demand, putting downward pressure on prices.
Figures from the Royal Institution of Chartered Surveyors show the increase in new instructions outpaced the rise in new buyer enquiries for the second consecutive month in February.
Fifteen per cent more surveyors reported a rise in new instructions than a fall, up from 5 per cent in January, and 7 per cent more reported a rise in new buyer enquiries than a fall, compared with -20 per cent in January.
The low January figures have been attributed to bad weather.
The balance of surveyors reporting an increase rather than a decrease in prices was 17 per cent, which was down from 31 per cent in January, and the lowest figure since July 2009.
A RICS spokesperson said: ‘Most market indicators are still positive and consistent with further house price increases. 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.’
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Readers' comments (3)
howie | 09/03/2010 11:53 am
"The rate at which homes are coming onto the market is outpacing growth in demand, putting more pressure on prices."
Surely some mistake above - should this not read ".... putting less pressure on prices"? or does this wording reflect the unconcious bias of the house owning IH editorial staff and readership?
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Editor's comments
Not sure about the unconscious bias of IH editorial staff, but I've added the word 'downward' to clarify.
Richard Parr | 09/03/2010 12:34 pm
I think all of the reporting world has been guilty of 'unconcious bias' when it comes to house prices.
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Cazz | 10/03/2010 11:00 am
I am sure that for some of us the increase in house prices is welcome....but for the vast majority of people trying to get a foothold on the ladder, who are chasing to save a deposit, I am sure it is unwelcome news. Affordability is a huge issue in the housing market....lets not forget that.
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