Indicators of buyer demand, sales, and prices are still in slightly negative territory, as momentum has been comparatively subdued compared to earlier in the year.
New buyer enquiries had a net balance reading of -7% in June, only slightly unchanged from last month’s figure of -8%. This is the third consecutive month that enquiries have slowed, suggesting a decline in demand from homebuyers. Newly agreed sales had a net balance reading of -7% this month, an improvement from last month’s -13%.
The number of new instructions on the sales market also slowed down in June, with a reading of -9% registered. In the six previous reports, positive monthly balances were recorded, so this latest data ends this run of increasing new listings.
However, sentiment is up as respondents have turned more optimistic about the near-term outlook on sales activity. Respondents anticipating recovered sales volumes in the next three months are up +20%, which is the most promising figure since January 2022.
The outlook for house prices in the next three months shows a net balance of +5%, suggesting that respondents believe the price decline has run its course. When it comes to the year-long expectation, sentiment is much more optimistic. A net balance of +41% of those surveyed anticipate an increase in house prices over the next twelve months.