House prices in Scotland are expected to rise amid a fall in buyer demand, according to the latest Royal Institution of Chartered Surveyors (RICS) data.
The May residential market survey indicates that a net balance of +15% of respondents expect prices to rise over the next three months.
A net balance of +76% of respondents reported a rise in residential house prices over the past three months.
Demand can be said to be slowing, with a net balance of -16% of respondents reporting a fall in new buyer enquiries, which may be impacting optimism in the market with sales expectations for the next three months falling flat.
In terms of stock coming onto the market, a net balance of -10% reported a fall in new instructions to sell, indicating that there may be limited supply.
A net balance is the proportion of respondents reporting a rise in prices minus those reporting a fall – so if 30% reported a rise and 5% reported a fall, the net balance will be 25% – and the data is opinion based.
During the month of May, it was reported that sales fell flat, which may be due to the limited stock available and the fall in demand.
Looking forward to the next three months, this pattern is expected to continue with sales expectations falling flat.
Philip Lovegrove, director of DHKK in Edinburgh, said: “The market shows some signs of slowing – available stock is significantly reduced from this time last year and the margin paid above market value is starting to reduce.”
Ian Morton, principal at Bradburne and Co in St. Andrews, added: ”The market has started to slow down probably due to economic uncertainty and fear of interest rises later this year.
”There is a hesitation from sellers coming forward as they cannot find suitable properties to buy due to lack of supply.”
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