Positive Shift in Housing Market Amid Rising Buyer Demand and Stabilizing Prices

Recent findings from a survey conducted by RICS reveal a positive shift in the housing market, with buyer demand on the rise and expectations for future sales improving. Additionally, house prices appear to be stabilizing, indicating a more optimistic outlook for the market.

Tarrant Parsons, senior economist at RICS, notes that demand is gradually recovering across the UK housing market, with new buyer enquiries increasing for the third consecutive month. The easing inflation backdrop has led to expectations that the Bank of England may lower interest rates later in the year, providing further support to the market.

Buyer demand is steadily increasing, with a significant 8% rise in new buyer inquiries reported in the survey, marking the highest positivity recorded since February 2022. Moreover, respondents anticipate a further rise in market activity, with 13% predicting an increase in sales volume over the next three months.

Furthermore, there has been a positive trend in house prices, with the number of respondents reporting price falls improving from -67% in September 2023 to -4% in March. This indicates a more stable price environment across the UK housing market.

Sarah Coles, head of personal finance at Hargreaves Lansdown, compares the housing market to spring weather, highlighting its unpredictability. However, she emphasizes that there are real positives, including more upbeat sentiment and expectations of rate cuts, which are attracting buyers and sellers back to the market.

While agents are not yet witnessing a rush in sales or significant price increases, they are confident that these developments are on the horizon, particularly as mortgage rates are expected to fall. Overall, there is optimism that clearer skies lie ahead as we move into the summer months.

In conclusion, the recent survey findings suggest a positive trajectory for the housing market, characterized by rising buyer demand, stabilizing prices, and growing optimism among market participants. Despite some unpredictability, there are promising signs of recovery and potential for further growth in the coming months.

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