The s1homes Scottish House Price Report for Q1 (Jan-Mar) 2014, shows that flats are continuing to sell significantly above their asking price, with properties typically going for £11,000 more than their listed price.
Average asking prices for two (£104,072) and three bedroom (£147,659) flats both increased in Q1 - compared with Q4 (Oct-Dec) 2013, with three beds rising by nearly 2%.
Terraced houses also continue to enjoy favourable selling conditions with properties on average selling for around £7000 more than their asking price, to sit at £123,809.
Overall, average asking prices and average selling prices of properties across Scotland continue to fall, suggesting that sellers are continuing to pitch prices at competitive levels to maximise interest as Scotland’s property market maintains its upward growth. The number of properties being advertised on s1homes jumped by 1552 compared to Q4.
The s1homes Reality Gap (the difference between what sellers hope to sell their properties for and the price they actually achieve) has widened to 5% from just over 2% in Q4, fuelled by the fact that typical properties in Scotland are selling at almost £8000 less than their asking price. This is being matched by a continued drop in the average selling price – down £6000 from Q4 – to sit at £153,352.
Ewan Stark, Managing Director or s1homes, said: “The latest s1homes report is good news for both sellers and buyers. By pricing properties sensibly and competitively, sellers are being able to secure a sale by seizing on the confidence that is growing at pace within Scotland’s property market. While buyers are finding that they can continue to pick up properties way below asking prices.”
Eric Curran, Managing Partner, Chartered Surveyors DM Hall, thinks that there is a great deal to be positive about in this quarter as, while prices in some sectors have remained fairly static, the number of properties on the market increased and flats continue to sell significantly above their asking price.
Andrew Watt, Director of Lanarkshire-based Residence Estate Agents, said: Since the beginning of 2014, we have seen a significantly healthy increase in confidence throughout our market, and with a greater level of demand and a lack of homes for sale, for the first time in several years, the popular "hot spots" of the market, have seen slight price increases as more and more closing dates taking place. The low mortgage rates and more readily available lending is certainly helping the market which we expect will bring continual growth.”
While flats and terraced houses are seeing sales above asking prices, the Reality Gap between asking and selling prices for detached and semi-detached properties remains wide. Detached properties are selling for more than £35,000 less than their asking price, while for semi-detached homes the gap is £5000.
Regionally, Edinburgh experienced the biggest increase in average asking price, up nearly 3%, while the most significant change took place in East Renfrewshire with the average asking price dropping by 4.5%
Argyll & Bute now holds the title of the largest Reality Gap in Scotland, driven by a sizeable drop in the average selling price which has fallen by £24,500 to £135,304. On average, properties are selling for £47,000 less than their asking price. The Reality Gap in Glasgow/Dunbartonshire narrowed again to 5%.
