RICS: House prices continue to rise
In its November 2009 Housing Market Survey, the Royal Institution of Chartered Surveyors (RICS) reports that prices continue to rise, despite a modest increase in the number of properties coming up for sale.
According to the research, a net balance of 35% of chartered surveyors agreed that prices were increasing, up from 34% in October.
In addition, more RICS members reported a rise, rather than a fall, in new instructions, although last month also saw higher demand from prospective purchasers.
The report observes: “The supply demand imbalance has been the main factor influencing prices and, unsurprisingly, for the fourth month in a row the majority of surveyors are again reporting rising rather than falling prices.”
November transaction levels remained in line with previous quarter, with sales per surveying firm at around 19 during November.
Meanwhile, the sales to stock ratio, which is regarded as a lead indicator of future prices, rose slightly to 31%, having now risen for the past 12 months.
However, the body points out that while key indicators continue to improve, the pace of improvements appears to be slowing.
In particular, the net balance of respondents who believe that prices will continue to rise, rather than fall, over the next three months dropped slightly to 28%, compared with 31% in October.
The research also confirms: “London and the South east continue to be the most buoyant regions with buyer enquiries remaining strong against subdued levels of instructions and as such, prices are rising most rapidly.”