Following the RICS (Royal Institute of Chartered Surveyors) published Housing Market Survey for July 2010,  Bill Jarvis, franchisee of Winkworth Romsey and Winchester, gives his take on how this survey’s results reflects his local market.

“The headline points from the survey are: supply increases but demand falls; price expectations deteriorate though the outlook for sales remains positive; only London and the North West are still seeing material price rises.

Supply

We have seen a very steady supply of new property coming onto the market in the last quarter with the same volume as the equivalent period in 2009, and there is no evidence so far as we are concerned that demand is falling, with July 2010 net sale agreed figures 13% up year on year compared to July 2009.

Those selling and buying in one transaction should have little to fear as long as supply of new property is keeping pace with demand.  Prices tend to rise if there is a shortage of property, and this will apply to both their sale and their purchase.

Prices Expectations and Sales Outlook

Vendors in our area, rightly, for many years had a very positive outlook 0 that the value of their own property will increase and outperform the national figures.  This belief was justifiably shaken a couple of years ago when prices look a dip, but now vendors’ expectations about the value of their homes are generally realistic – that prices will hold or increase but will not gallop ahead.

The important point to note from this survey, and one we are definitely seeing locally, is that sales outlook remains positive.  With good levels of new, committed buyers registering in consistent numbers, the volume of sales should remain positive.

Only London and North West still seeing material prices rises

I am not sure what a “material” price rise is, but prices have generally continued to rise in our area too.  It is also worth noting that the Winchester market has traditionally mimicked the London market a few months later, so some definite cause for optimism there unless you are a first time buyer.

In the local area it therefore seems we are as we were, with a robust housing market.  One set of figures is certainly not something to be scared of”.

For property to buy in Winchester contact Winkworth Winchester on 01962 866 777.

For property to buy in Romsey contact Winkworth Romsey on 01794 511911.