- Overall Reality Gap narrows from 9% last quarter to 2%
- Average selling price is up by 6%
- Average asking price is down by 1%
- Flats and terraced houses continue to sell above asking prices, and semi-detached properties are now also selling above their asking price
- Detached houses continue to be unrealistically priced and on average sell for around £40,000 less than their asking price
The latest quarterly house price report published by Scotland’s biggest dedicated property website, s1homes, reveals that there has been a significant reduction in the ‘Reality Gap’ (the difference between what sellers hope to sell their properties for and the price they actually achieve).
In the July to September period the Reality Gap narrowed from 9% to 2%, mainly driven by an increase in the amount home buyers are prepared to pay, and not a drop in prices. On average properties were selling for around £4,000 less than their asking price compared to a difference of £14,500 in the previous quarter. But that masks significant variations between the top and bottom of the market with all property types except detached now achieving more than the asking price.
And for the first time in over 2 years semi-detached properties are selling for significantly more than their asking prices. On average, sellers of semi-detached properties are achieving 4% (£6,000) more than the advertised price.
The full picture across Scotland by property type is :
Flats Achieving £19,000 MORE than the asking price
Terraced Houses Achieving £11,000 MORE than the asking price
Semi- detached Achieving £6,000 MORE than the asking price
Detached Achieving £40,000 LESS than the asking price
Ewan Stark, Commercial Director of s1homes said: “This quarter’s report shows that there have been significant changes taking place in the property market. Buyers are now prepared to pay more than they have been for quite some time and that coupled with a slight decline in average asking prices is what has led to the upsurge in the volume of properties being sold. That’s positive if you’re looking to sell a property but the sharply rising prices at the lower end of the market aren’t good news for first time buyers.”
Commenting on the report, Katrina Maxwell, Managing Director of K Property said: “The latest s1homes House Price Report mirrors my experience of the housing market in recent months. The market has definitely improved, it is more stable and we are seeing much greater demand for homes. Particularly at the lower end of the market we are seeing most properties achieving their valuation price and demand is high. The turnover of property at the higher end of the market is slower and properties are still selling for less than their valuation price, although selling prices are definitely increasing. With sales volumes increasing we anticipate an exciting 2014”.
Regionally the Reality Gap fluctuates, the biggest gap was in Argyll & Bute where properties are on average selling for 21% (£38,000) below their asking price. Edinburgh is the only region where the average property sells for more than the asking price with sellers achieving 4.5% (£9,500) more. The Reality Gap in Glasgow/Dunbartonshire has narrowed from 11% (£16,000) last quarter to 7% (£10,000).
The House Price Report, published quarterly, samples around 25,000 properties advertised on s1homes.com every month and provides trends in the various property markets throughout Scotland.
