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The Masked Tulip

Over Supply In Swansea

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Can't say that I am seeing any evidence, bar the odd small drop here and there, of this yet but fingers crossed.

http://www.walesonline.co.uk/news/wales-news/2010/07/19/house-price-increase-set-to-be-wiped-out-by-end-of-year-91466-26880132/

The statistics show that in England, new-to-the-market properties were up for sale at an average of 0.6% less than prices in the previous month.

Miles Shipside, commercial director of Rightmove, said the rising number of new sellers might mean prices have to drop to become more competitive.

He said: “We are seeing new-to-the-market asking prices see-saw in Wales over the last few months, with a 0.9% rise this month making up ground following a fall of 0.4% the previous month.

“This month the principality has performed better than England, though market watchers should note that the number of new sellers in Wales has increased dramatically too.

“With prospective buyers struggling to meet lenders’ demands for higher deposits, it may be that some of these new sellers will have to drop their price aspirations as the competition to find a buyer is getting fiercer.”

Rightmove said it had seen a 76% increase in the number of properties coming up for sale in the past month than at the same time last year.

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More than 6,300 properties were online at the start of July compared to 3,390 last year.

And the percentage increase of sellers in Wales is greater than anywhere in England, with Mr Shipside attributing the rising number of properties on the market to the scrapping of home information packs.

He said the huge supply of properties coming onto the market is good news for those looking to buy a house.

“It’s great for the fluidity of the market to have more sellers being able to market more easily, though it does mean more property to compete against,” he said.

“This is good news for buyers as they can strike a harder bargain, but means that those who are keen to sell will have to price more aggressively in areas of over-supply.”

Prices in Swansea dropped more than 4% between June and July, indicating there may be an issue with over-supply in the city.

Mr Shipside said the difficulty buyers face in getting a mortgage is adding to the instability in the market.

The latest figures show that for every two mortgages approved by lenders, five properties are put up for sale.

Mr Shipside said: “The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50% in the number of properties coming to market compared to a year ago.

“More aggressive pricing is now the order of the day, which means that conditions are ripe for a strong buyers’ market in the second half of 2010.

Rightmove’s figures come less than a week after findings from the Royal Institution of Chartered Surveyors (Rics) showed the ratio of homes sold against those available is the lowest in the whole of the UK.

Tony Filice, residential spokesman for Rics Wales and director of Kelvin Francis chartered surveyors, said: “Wales has seen supply increase in the housing market which is currently exceeding the amount of sales we are experiencing.”

Edited by The Masked Tulip

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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