RICS House Price Balance

AAA

DEFINITION of 'RICS House Price Balance'

An indicator of the expected monthly change in house prices in the UK, published by the Royal Institution of Chartered Surveyors (RICS). The RICS house price balance is based on opinions about housing price trends of a sample size of surveyors based in the UK, covered by the RICS monthly Housing Market Survey.


The house price balance figure is calculated as the proportion of surveyors reporting a rise in housing prices minus the proportion reporting a fall in prices. A positive net balance implies that more surveyors are seeing housing price increases than decreases, which would imply a robust housing market. A negative net balance implies that more surveyors are witnessing housing price decreases than increases, implying a fragile housing market.

INVESTOPEDIA EXPLAINS 'RICS House Price Balance'

Consider the following example to calculate the house price balance figure. Assume that in a survey of 300 surveyors, 150 reported that prices went up, 50 reported no change and 100 reported that prices went down. Proportionally therefore, 50% reported higher prices and 33% reported lower prices, for a net house price balance of +17.

RELATED TERMS
  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. NAHB/Wells Fargo Housing Market ...

    An index based on a monthly survey of members belonging to the ...
  3. Housing Starts

    The number of new residential construction projects that have ...
  4. Housing Bubble

    A run-up in housing prices fueled by demand, speculation and ...
  5. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
  6. Factor Market

    A marketplace for the services of a factor of production.
RELATED FAQS
  1. Is there a correlation between inflation and house prices?

    There is a correlation between inflation and house prices - in fact there are correlations between inflation and any good ... Read Full Answer >>
  2. Why would a company have a subsidiary in a different sector from its main source ...

    A company would have a subsidiary in a different sector from its main source of business if it is looking to increase its ... Read Full Answer >>
  3. What is the difference between cyclical and non-cyclical stocks?

    The difference between a cyclical stock and a non-cyclical stock is that a cyclical stock is highly correlated with movements ... Read Full Answer >>
  4. What are the benefits of investing in a cyclical stock?

    Cyclical stocks tend to be highly correlated with the overall business cycle, so an investor can invest in a cyclical stock ... Read Full Answer >>
  5. What is the relationship between specialization of labor and opportunity cost?

    The relationship between specialization of labor and opportunity cost is based on the mutually exclusive outcome inherent ... Read Full Answer >>
  6. What are the practical uses for unlevered beta?

    A security's unlevered beta measures the volatility and performance of that security in relation to the performance of the ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    House Price Vs. Interest Rate: Which Is More Important?

    Deciding which factor is more important can make a difference in monthly payments, ability to move and Homowners Association fees.
  2. Personal Finance

    Analyzing A REX Agreement

    These contracts can be an effective way for homeowners to hedge against declining house prices.
  3. Options & Futures

    REX Agreements Climb As House Prices Decline

    These purchase options let you hedge against a decline in your home's value without having to sell the house.
  4. Stock Analysis

    Today's Top ETFs: Worth a Bet or Should You Pass?

    ETFs can be profitable and dangerous. Here's a list of today's most popular funds and what you should watch about them.
  5. Economics

    Explaining Marginal Propensity to Consume

    The marginal propensity to consume is a measure of how much consumption changes when income changes.
  6. Economics

    Explaining the Value Chain

    A model of how businesses receive raw materials as input, add value to the raw materials, and sell finished products to customers.
  7. Fundamental Analysis

    Explaining Variance

    Variance is a measurement of the spread between numbers in a data set.
  8. Investing

    How To Play Potential Market Opportunities In 2Q?

    The first quarter played out as expected, but there were a few surprises, including a strengthening dollar and how far interest rates have fallen.
  9. Investing

    Africa's Rapid Tech Advancement Drawing Investors

    The rapid adoption of technology, and the proliferation of startups, in Africa have created excellent investment opportunities.
  10. Economics

    What Is Supply?

    Supply is the amount of goods a producer is willing to produce at a given price, and is one of the most basic concepts in economics.

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  4. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  5. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
Trading Center