The volume of home sales is expected to rise in the next three months despite a cost of living crisis and a lack of supply in the market, new research has shown.
A greater number of surveyors (+25%) are expecting the number of properties sold between May and July to increase. That’s up considerably on the previous month’s Royal Institution of Chartered Surveyors (RICS) and Ulster Bank Residential Market Survey for March.
However, the report says the prevailing issues between demand and supply “have continued into the second quarter of the year”.
And while inquiries for new buyers was up, there was a fall in the number of people wanting to sell their properties.
“It’s encouraging to see that surveyors are expecting an increase in sales over the next number of months albeit we are still experiencing an imbalance between demand and supply,” Samuel Dickey, RICS Northern Ireland residential property spokesman, says.
“The lack of stock has been apparent for many months and as such we’re seeing this drive prices up across all categories, with expectations this will continue in the next three months. The expectation that sales will rise over the next quarter could be an indication that more stock may be expected to come onto the market.”
And “despite growing macro headwinds in the form of cost-of-living pressures and higher interest rates, the residential market continues to see modestly positive trends in new buyer enquiries”, according to RICS economist, Tarrant Parsons.
“For the time being at least, even though there is a lot of caution about the future economic landscape, it seems that limited supply available on the market, coupled with steady demand growth, are still the overriding drivers of house prices.
“As such, there is little evidence at this stage of house price inflation losing much momentum, while expectations for the coming twelve months have only moderated slightly from recent highs.”
And Terry Robb, head of personal banking at Ulster Bank, said: “At Ulster Bank we are continuing to see good mortgage demand. We also know that consumers are very keen to make energy efficiency savings in their homes, therefore increasing their environmental sustainability.
Our green mortgage is one way that we can help consumers save money by being more energy efficient.
“We’ve put climate change at the heart of our strategy to be a purpose-led bank here at Ulster Bank. It’s therefore important that we support our customers on the transition to net zero. We can help them understand and reduce their climate impact and deal with the escalating costs of energy bills.”