There’s been yet another month of declining property listings according to the latest Royal Institution of Chartered Surveyors market snapshot.
Those responding to RICS’ late November survey reported a net balance of +13 per cent in new buyer enquiries, a slight increase on the +11 per cent reported in October.
But there’s a net balance fall of -9 per cent in agreed sales – this is the fifth time in a row a negative result has been reported.
Respondents frequently said the continuing drought in new listings was a significant factor holding back the market nationwide – with a net balance of -18 per cent of respondents noting a deterioration for an eighth consecutive month.
Additionally, the volume of home appraisals undertaken in November was below that seen in the same month last year, with the latest net balance coming in at - 20 per cent.
A lack of stock is therefore driving competition between prospective buyers, which is resulting in house prices being pushed higher.
A net balance of +71 per cent of participants cited an increase prices, which is identical to October’s survey.
Simon Rubinsohn, RICS chief economist, comments: “The issue of supply is gathering ever more importance in the feedback to the RICS Residential Market survey.
“Critically, the theme runs strongly both through the latest set of contributor comments as well as the data around new instructions and the decline in inventory on agents books.
“Unless this trend is reversed soon, transaction levels may flatline in 2022 with limited choice proving more significant than any shift in the interest rate environment for new buyers.
“The imbalance compared to the demand trend is, meanwhile, likely to continue to be a key factor supporting prices and indeed, even if the cost of mortgage finance does begin to edge up, it is likely that house prices will continue to move higher through the coming year, albeit at a somewhat slower pace than over the past 12 months.”