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. Heckscher-Ohlin Model

    An economic theory that states that countries export what they ...
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 >>
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. Personal Finance

    Why Are Tesla Cars So Expensive?

    What makes Tesla cars so expensive? Short supply and pricey parts is a good place to start.
  5. Economics

    Asian LNG Prices: Not Likely To Rise Anytime Soon

    Asian LNG prices could stay low for an extended period of time, due to low oil prices, less demand and new LNG-producing projects on various continents.
  6. Economics

    What is M1?

    M1 is a measurement of money supply that includes all hard currency, plus demand deposits such as checking accounts.
  7. Investing Basics

    Here's How To Tap International Markets

    Access to foreign markets has grown a lot in recent years, allowing US market players to trade these bourses in real-time.
  8. Stock Analysis

    3 Things I Learned From lululemon Athletica's 10-K

    Lululemon athletica has emerged not only as one of the nation's fastest-growing retailers, but also as one of the market's favorite growth stocks.
  9. Stock Analysis

    Energy Transfer Partners' Mexican Ambitions

    There has been a lot of talk over the past year or so about America's enticing ability to export natural gas to global markets
  10. Stock Analysis

    What’s The Smartest Way To Play Tobacco Stocks?

    While the United States economy continues to grow, the U.S. tobacco industry keeps shrinking.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center