Demand grows for housing in the region
Sales of homes increased for a third consecutive month in the region, as has buyer demand and new instructions.
According to the RICS UK Residential Market Survey, plus 13 per cent more respondents saw an increase in the number of sales being agreed over the course of February in the West Midlands.
Coupled with this, the number of people listing their property for sale and making enquiries about finding a new home also rose.
This sustained period of growth sees respondents forecasting a better sales outlook for the rest of the year, with plus 25 per cent of survey participants saying they expect more homes to be sold.
The strong demand from buyers and sellers alike in the West Midlands has seen prices increase for the third consecutive month.
In February, a net balance of plus 21 per cent of contributors reported house price growth.
Looking across the UK, while there was growth in all regions, London, Yorkshire and the Humber and East Anglia all saw the strongest increase in house prices.
Respondents also remain upbeat for the typical spring bounce as plus 23 per cent more are expecting house prices to continue to rise over the coming three months.
Anecdotally however, some respondents did raise concerns about the impact of coronavirus which although yet unknown, could adversely affect viewings and the traditional spring house selling season.
Simon Rubinsohn, RICS chief economist, said: “It is encouraging that the results of the latest survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents. Indeed, this is the first time since 2014 that new supply to the market on the RICS indicator has increased for three consecutive months.
“Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector.
“For now, at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”