Residential Property Market Comment - 2017
Property market speculation is almost as talked about as much as the weather and so not surprisingly The Royal Institution of Chartered Surveyors (RICS) chief economist has some thoughts to share on the prospects for 2017.
The RICS is the world 's leading professional body that accredits professionals within the land, property and construction sectors. Founded in the UK this professional body for valuers and estate agents traces its history back to 1792, a little after the firm now known as Drew Pearce was founded by JH Drew in 1748. Members of the Drew family were amongst those Surveyors who are believed to have founded the Devon and Cornwall branch of the Institution of Surveyors as it was then known.
Enough of the history, what of the future? Well currently the RICS is predicting that house prices across the UK will see an average increase of 3% over the course of 2017. A modest average price rise, which will see variations between regions, locations and property types. This anticipated gentle upward pressure on average prices is in large part attributed to the continuing supply-side shortfall. The short-fall being a product of homeowners, who might otherwise move, lacking the confidence to put their own property up for sale, and of course the widely reported legacy of insufficient new stock being built.
RICS reports that the lack of supply together with the wider economic uncertainties has also been having an impact on the number of transactions. The result for 2016 is forecast by the RICS at a total in the region of 1.25m, and the prediction for 2017 is at 1.15m-1.25m. This compares with the peak levels for 2006/2007 of circa 1.6m transactions and to the 2009 crash level of only 800,000.
Locally Exeter has seen a relatively strong market but post- Brexit both within the city and across Devon there have been signs that the higher end of the market has been struggling, perhaps resulting from a spill-over from the more volatile conditions within the London market.
Demand though is holding steady across most price sectors and so in the face of a supply side shortage now is a good time for would be vendors to step forward with confidence as the prospects of achieving a sale in 2017 look good.
For free marketing advice and a guiding hand through the property maze contact the Drew Pearce Residential Agency team now on 01392 201748.