There are indications that some sellers are holding on to unrealistic expectations which is restricting sales activity. March saw house prices fall further, at a slightly faster pace. 37% of chartered surveyors report a fall in house prices, down from 32% the previous month.
Property sales were also affected by an early Easter and fears of further interest rate rises. The continued uncertainty also dampened new purchase enquiries which remain stagnant. After rising over the past two months, newly agreed sales also remained flat.
After the large increase in property stock on surveyors' books last month, March saw a slight fall, though the property supply is still 23% higher than this time last year.
With restrained market conditions, surveyors envisage further price falls. However, they are optimistic that sales will increase as underlying economic conditions improve further, with prospects for new jobs remaining strong in 2005.
Prices remain weak across much of the UK, and have fallen in the Midlands and Southern England with more moderate declines in the Northern regions. However, they remain stable in London and are rising more strongly in Scotland.
RICS national housing market spokesperson, Jeremy Leaf comments: "While there are no signs of a collapse, housing market activity showed little change in March, but we expect good job prospects and stable interest rates to lead to improved sales as the year progresses.
"Getting on the property ladder is currently easier for first-time buyers as buyers increasingly call the shots. Sellers must be more realistic if they want to secure a sale."
