Royal Institute Of Chartered Surveyors Downbeat About 2011

Despite the Christmas party season coming into full swing this week, the Royal Institution of Chartered Surveyors (RICS) issued a gloomy report on the housing market, noting that prices, sales and numbers of properties for sale all fell in November.

When asked whether prices were rising or falling, 44 per cent more surveyors said they were falling in November, while 41 per cent more predict that they will continue to fall in the coming three months than expect a rise.

Buyer enquiries fell for the fifth month in a row, as mortgage finance remained scarce and purchasers remained ultra cautious. The cold weather has contributed to very low levels of stock coming on to the market, according to the RICS, with average figures of 67.2 properties on surveyors’ books and completed sales of 15.2 per surveyor, the lowest since June 2009.

“With both supply and demand falling transaction activity is set to remain at relatively flat levels for the foreseeable future,” said RICS spokesman Jeremy Leaf. “Agents may be cautious about what this could mean for house prices in the short term, but dramatic falls are likely to be limited by a gradual drying up of stock coming to the market.

“It is also worth noting that a subdued housing market is not good news for an economy which requires a high degree of mobility to take advantage of job opportunities.”

On the plus side, X Factor has finally come to an end.

Original comment can be found at The House Prices Advisory

via Posterize