Our latest quarterly house price report shows a widening of the Reality Gap (the difference between what house sellers hope to sell their properties for and the price they actually achieve) as the average price achieved continues to fall. 
On average properties in Scotland in the first quarter of the year sold for almost exactly 10% less (£16,500) than the advertised price, but the picture varies dramatically from one end of the market to the other with flats and terraced houses actually achieving more than the advertised price by an average of £5,000 and £2,000 respectively.
The main driver of the drop in overall selling prices has been semi-detached properties, with a significant decrease of over 4%. This means the average selling price of a semi-detached house is around 6% less than the asking price, compared to 2% less last quarter, whereas detached properties showed little change and still sell at around 20% below the average asking price.
Mark Smith, Managing Director of s1homes said: “Asking prices at the higher end of the market are starting to drop, but only very slightly, and buyers are continuing to pick up properties for considerably less than the advertised price. It’s a different story though away from the leafy suburbs with flats being priced much more realistically and sellers getting what they are looking for.”
Commenting on the report, Steven Miller of Donald Ross Estate & Letting Agents Ltd said: “Quarter 1 2013 has seen the best start to a new year since 2007, our specific market analysis has shown a rise in activity. Viewing figures have increased and subsequently so have the number of buyers as a proportion of viewers. We’re finding that sellers have been more realistic and there are areas where sellers of quality properties in desirable locations and with realistic asking prices have been generating competition, resulting in an increase in closing dates and selling prices.”
The majority of regions saw a widening in the Reality Gap with Argyll & Bute seeing a decrease in the Reality Gap, once again.
The biggest increases in the Reality Gap were seen in Glasgow/Dunbartonshire and Renfrewshire/Inverclyde where there were significant decreases in the average selling prices.
The report, published quarterly, samples around 25,000 properties advertised on s1homes.com every month and provides trends in the various property markets throughout Scotland. For more information visit www.s1homes.com/house-price-report/.