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Demand versus supply - resilient house prices

House hunting demand is easing for the first time in eight months – yet house prices are set to rise further.

One of the West Midlands leading independent sales agents, Balfours, concurs with figures released by the Royal Institution of Chartered Surveyors RICS, showing a 7% drop in demand in May. Alistair Hilton, head of sales explains: “Demand is relative to supply, we have seen a continuous shortage of supply over the last two years, for that reason the prediction is for house prices to remain strong, at least until the autumn.”

He continues: “Actual sales are likely to mirror the curb in demand in the next three months, thereafter as the cost-of-living bites, property values are likely to plateau – held in suspension by the continuing short supply. Anyone considering launching their home to the market will currently be pleasantly surprised. It is our experience that pent up demand from buyers is by no means satisfied.”

RICS figures reveal a quarter of agents are predicting that the next twelve months will see a reduction in the number of sales. “Yes, house hunters are tightening their belts, on the back of higher interest rates and energy costs, both directly linked to owning your own home.

“However, with little prospect of increased housing stocks, house prices are predicted to remain resilient into 2023,” Alistair concludes.  If you would like a complimentary and confidential appraisal of your property call Alistair and the Balfours team on 01743 353511.

Alistair 2021

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