Price growth is volatile and market sentiment points to continued low levels of activity
Summary
Nationwide reported a surprise bounce in monthly house price growth in June of 1.1% reversing the house price falls reported over the three preceding months, but other market indicators suggest this may be shortlived. It brings year to date growth up to 1.0% in June compared to -0.1% in in May.
The Nationwide index sits in stark contrast to the May RICS survey which reported a growing number of surveyors predicting falling buyer enquiries and new instructions. The number of surveyors predicting house price growth has also fallen back compared to the previous six months. The May survey is a barometer of sentiment in the lead up to the general election as polls began to narrow and the uncertainty created by the result is unlikely to have a positive impact in June. This suggests the Nationwide bounce could be a one off and its effect may erode over the course of the year.