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Summer holidays to have 'dampening effect' on housing market according to report

The report says both prices and activity tend to be affected in the summer. Credit: PA

The summer holiday season is to have a dampening effect on the housing market in Wales. That's according to a report out by Rightmove saying both prices and activity tend to be affected in the summer.

Prices are in the summer doldrums. Sellers coming to market at this time of year have to price more keenly as the traditionally bubblier spring selling season is over and prospective buyers are distracted by their own summer holiday plans.

A year on from the shock referendum result and subsequent dent in activity levels, the fundamentals remain strong. Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence and as a result nearly half the properties on the market, over 45%, have sold signs slapped across them.

– Miles Shipside, director of Rightmove

The report also says home buyers are encountering more "sold" boards slapped on properties than at any other time in the last seven years.

Prospective buyers are "seeing a lot of sold boards on properties they would like to buy themselves" with over 45% of estate agents' property stock now being sold subject to contract.

This is the highest proportion recorded by Rightmove since it started recording the data seven years ago.

Rightmove's findings for July come after the Royal Institution of Chartered Surveyors reported that the average number of properties available per agency branch had fallen to an all-time low in June.

Despite continued high demand for properties and a lack of homes to choose from, stretched buyer affordability is acting as a brake on house price growth, Rightmove said.

However in July, asking prices on a property coming to market increased by 0.6% in Wales. That's up on the average of 0.1% for Wales and England.

Last week it was reported that the housing market saw the slowest growth for four years.