In January, the UK housing market experienced a notable slowdown due to declining property prices and decreased buyer demand. Nevertheless, the Royal Institution of Chartered Surveyors (RICS) predicts an upturn in activity in the coming year.
Results from the RICS survey reveal that the net balance of house prices fell to +22 in January, down from a revised +26 in December. It's important to note that this is still the highest level since September 2022. Economists surveyed by Reuters had predicted the index to reach +27.
1. Price and Demand Shifts: The decrease in the net balance of house prices points to the difference between the number of surveyors reporting price increases and those noting declines. Despite the drop, this figure remains relatively high.
2. Sales Dynamics: The number of inquiries from new buyers and the volume of agreed sales have also shown a decline. However, market participants remain cautiously optimistic about the recovery of sales and prices in the near future.
According to RICS, despite the current challenges, respondents are optimistic about the increase in sales and prices. They anticipate market improvement in the coming months due to the following factors:
- Growth Drivers:
- Sustained interest from buyers, despite current price declines.
- Gradual restoration of confidence amid positive economic news.
- Downward Pressures:
- Impact of macroeconomic trends, including changes in interest rates.
- Ongoing uncertainty in international markets.
Experts play a crucial role in forecasting market changes and helping to identify the main trends that could influence property values. Their data and predictions serve as a guide for both property buyers and sellers.
The UK housing market stands at a pivot point where negative factors currently prevail, but long-term forecasts are more optimistic. This period could serve as an opportunity for all market participants to adapt their strategies in anticipation of new growth.
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Despite the current slowdown, hope remains for a recovery in the UK housing market this year.