Cautious Optimism in Scottish Housing Market

According to a survey carried out by The Royal Institution of Chartered Surveyors (RICS) the number of houses sold in Scotland increased last month.

The survey, carried out with a group of their chartered surveyors, said its members were “cautiously optimistic” that this trend would continue.

24% more respondents said new sales had risen rather than fallen and there was also an increase both in the number of homes coming onto the market, and more potential buyers. That said the number of properties available remains at historically low levels, the survey warned. Scottish chartered surveyors also continued to report drops in prices, as 12% more respondents claimed that prices had dipped.

However, they predicted prices would continue to stabilise over the coming three months as confidence gradually returns to the housing market. This survey was carried out for the Scottish Market – however it is important to note that the property market is very much localised.

Performance of the market needs to be drilled down to specific areas and specific house types in order to understand price movement and demand in particular areas for specific property types.

There is no question that some areas of Edinburgh and the Lothians continue to perform reasonably well whilst others are seeing a downturn although lower prices are a positive thing especially for first and second time buyers.

Espc reported the following figures in their February release:

• In the three months to February the average house price in Edinburgh was £191,623 – down 5.0% annually.
• There was a mixed picture for house prices within the Capital. Larger properties generally saw prices rise while values of smaller homes were lower than they were a year ago.
• In East Lothian the average house price rose sharply, but this increase was fuelled by a rise in the number of larger homes selling.
• 83.9% of homes sold between December and February were secured for less than their Home Report valuation, down slightly from 85.9% a year ago.
• On average, buyers paid 6.3% below Home Report valuation in the three months to February 2012.

Moving house is a very personal thing.  There are many factors to take into account such as the price you are likely to achieve for your own home, how quickly it will sell and the price of property in the area you want to move to.  Don’t try to figure it out on your own – ask us for a no obligation consultation to discuss whether now is the right time for you to make a move.