RICS: Agents achieving above asking price sales despite cooling market

New instructions and buyer demand have stumbled again but agents are still managing to sell existing stock above asking price, the RICS claims.

The latest RICS Residential Market Survey for June found 50% of respondents reported that average sales prices are coming in above asking prices for properties listed at up to £500,000.

Alongside this, 39% of respondents cite sales prices are coming in above asking prices for properties marketed at between £500,000 and £1m. 

The picture is a little different for properties listed at £1m or above however, with respondents on balance reporting sales prices to be slightly below asking prices.

It comes as the report showed new instructions remain flat, while 13% more respondent said sales agreed fell rather than rose.

Short-term sales expectations are now marginally negative, with a net balance of 9% of respondents anticipating a fall rather than a rise in transactions over the coming three months.

Further out, 12-month sales expectations are also negative, with 21% more expecting a decline rather than a rise in transactions.

The new buyer interest net balance also slipped for the third successive month, with 27% of respondents reporting a fall rather than a rise in interest from would-be buyers.

The lack of stock continues to push prices up though, the RICS report said, with 65% of respondents cited an increase rather than a decrease in house prices, albeit this is down from the recent April high of 78%.

Looking ahead, 37% more respondents foresee prices continuing to climb rather than fall over the next 12 months, but this is down from the February high of 78%. 
 

Simon Rubinsohn, chief economist for RICS, said: “Pricing across much of the housing market remains resilient for now with a shortage of stock continuing to be a feature highlighted by many respondents to the survey.

“Although buyer enquiries have predictably slipped a little of late, this needs to be placed in the context of the healthy level of demand in previous months.”

Addressing the Conservative Party leadership contest, Jonathan Hale, head of government affairs, UK & Ireland, said the next Prime Minister will need to prioritise housing.

He added: “RICS has long called for planning reform and greater deployment of modern methods of construction to support an increase in housing supply. 

“The latest survey points to a further decline in housing availability and rents in the lettings sector show no signs of falling. Any future government agenda needs to look to expand the owner occupied, social housing and the private rented sector, and not just limited just to new builds.

“Increasing housing supply should encompass optimisation of existing and empty housing stock and should include a target for the number of affordable homes constructed utilising the RICS Standard for the Valuation of Land for Affordable Housing to support the assessment.”