Market demand remains strong as average Scottish house prices increase year-on-year
Lindsays has reported a year-on-year increase in the average price of properties it has sold, with the average price in Edinburgh reaching £325,000.
Despite ongoing economic uncertainty and political turmoil, the firm believes market appetite remains steady and notes that predictions of price collapses have not come to fruition.
Lindsays recorded an average price of £204,000 for properties in Dundee, a 13% increase from the previous year, and for the first time exceeding £200,000.
Citing Registers of Scotland data, the firm points out that the average price of a property in Scotland in October was £194,874, marking year-on-year and month-on-month increases of 8.5% and 1.1%, respectively.
Lindsays believes the cost-of-living crisis and a rise in interest rates caused the market to shift from being heavily weighted towards sellers to a more balanced state, with offers “more commonly closer to the home report valuation”.
Andrew Diamond, partner and head of residential property at Lindsays, told The Scotsman: “Predictions of doom and gloom have not materialised and the market has settled down, as we expected it would.”
He continued: “The outlook may, to some, have seemed dreadful in the very short term, but has improved as time has moved on. Interest rates have already started to settle. Mortgage rates are dropping slightly.
“What we might see in early 2023 is a much more stable, tradeable market, with prices at a slightly less frothy level but with a greater ability for buyers and sellers to actually trade – to get things done. Ultimately, it’s important to remember that a balanced market is a good market, particularly if you are both a buyer and a seller.”
Mr Diamond added: “Will we see some heat come out the market? if you mean some of the extreme high prices we’ve seen recently, then absolutely.
“That’ s not a bad thing in most peoples’ eyes. If what you end up with is a more trade able position, that’ s good. There’s definitely a move to being a bit more traditional about the ordering of your sale and purchase. I don’t see that reversing in the short-term.”
Lindsays hopes that the market in 2023 will be more stable and productive for both buyers and sellers. The firm also reported a decline in the number of purchases being agreed subject to the sale of the purchaser’s current property, as more people are selling their homes before agreeing deals to buy another.