With the headline price net balance declining from -8 to -32, the lowest reading since May 2009.
The weaker trend in prices is being driven by a combination of increasing new vendor instructions and falling new buyer enquiries. The new instructions net balance of +12 is lower then last month’s reading of +33.
This suggests however, that the initial surge in supply following the abolition of HIPs has started to fade. Meanwhile, the new buyer enquiries net balance fell from -10 to -17. Significantly the gap between these two series, which is the best lead indicator of future price behaviour, has narrowed for two successive months.
The average number of sales per surveyor increased by 1% on the month to 16.7, and has been broadly stable for the past four months. Meanwhile, the average number of properties on surveyor’s books fell by 1.6% on the month, to 67.8. As a result, the sales to stock ratio - an indicator of market slack - actually edged up from 24% to 24.7%.
Price expectations continued to deteriorate, with the net balance falling from -28 to -38. However, the softer trend in prices does appear to be fuelling a pick up in sales expectations; the net balance for this series rebounded from +8 to +18, its best level since May.
In terms of the regional picture, respondents are now reporting price falls across all regions covered by the survey apart from Scotland. Surveyors reported falling prices in Northern Ireland for the third year running.
