Homebuyer demand in Wales hit a nearly three-year high last month, according to the Royal Institution of Chartered Surveyors (RICS).

The Residential Market Survey indicated that the rate of new properties listed for sale was high, boosting hopes for increased sales.

Notable signs of improvement in the Welsh housing market were evident.

House prices, following a dip since October 2022, increased in March for the first time.

A net balance of 12 per cent of Welsh surveyors reported a rise in house prices, which contrasts to the UK average of -4 per cent net balance.

As for the near future, the net balance of respondents predicting price falls over the coming three months was -7 per cent.

The figure, although negative, is a marked improvement compared to February's -13 per cent.

The demand for houses in Wales surged to the highest level since mid-2021.

A net balance of 49 per cent of Welsh surveyors reported a rise in new buyer demand in March.

This was the fourth month in a row with a positive growth indication.

Supply figures are encouraging as well.

A net increase of 40 per cent in new selling instructions was noted by respondents, up from 32 per cent recorded in the previous survey.

Parallel to the increasing demand and supply, house sales also experienced a consecutive surge in March.

Surveyors are optimistic about future sales.

The percentage anticipating a rise in sales over the next three months stood at 13 per cent.

Looking further ahead, a net balance of 45 per cent is expected in house sales growth over the next twelve months.

The lettings market imbalance persists.

A drastic contrast between the rise in tenant demand, noted by 50 per cent of Welsh surveyors, and the fall in market supply by -20 per cent creates a remarkable demand-supply gap.

Consequently, a net balance of 20 per cent of surveyors predicted rental price hikes over the next three months.

Anthony Filice, FRICS of Kelvin Francis Ltd. in Cardiff, said: "There has been a continued increase in valuations, instructions and sales agreed, in line with anticipated Spring market.

"There is more choice of properties available which if correctly priced are selling.

"Stable mortgage rates are encouraging activity."

Discussing the rental market, Paul Lucas, FRICS of R.K.Lucas & Son, in Haverfordwest, said: "Demand is high with limited supply.

"Some long-term landlords are still exiting the market."