- Properties in Scotland on average sell for £8,000 more than their asking price
- Only detached houses now typically sell for less than their asking price
Our latest quarterly house price report reveals that there is no longer a Reality Gap in Scotland. Interestingly, this is the first quarter in the report’s history where a Reality Gap hasn’t existed in Scotland.
The Reality Gap is the difference between what sellers hope to sell their properties for and the price they actually achieve. Properties in Scotland are now typically selling for around £8,000 more than their asking price.
For a second quarter, only detached houses are selling for less than their asking price. However, the Reality Gap has narrowed, detached houses are now on average selling for £31,000 less than their asking price compared to £37,000 last quarter.
In contrast, flats are typically selling for £27,000 more than their asking price while terraced houses on average sell for £20,000 more and semi-detached houses for £9,000 more.
Ewan Stark, Managing Director of s1homes said: “We have reached a turning point in the Scottish property market. Buyers are now prepared to pay more than they have been for quite some time and sellers at the lower end of the market are seeing their asking prices being surpassed more notably. It’s still a buyer’s market when looking for a detached property but the gap is narrowing so we could see a very different picture in 2015.”
Commenting on the report, Barry Chuwen, Director of Move Quick said: “At Move Quick we are seeing positive signs of improvement within the Scottish market in most sectors with only the high end proving a little more challenging. The narrowing gap between asking price and selling price is a good indicator that there is an increased demand from buyers. This coupled with the steady but sustained increases in the actual selling price throughout the year gives a very positive outlook and shows that there is a continued return of confidence to the marketplace. The overall picture is positive and shows that demand is returning.”
Eric Curran, Managing Partner of Chartered Surveyors, DM Hall said: “Comparing the figures with the same quarter last year, it is interesting to note that while the average asking price has reduced this year, the average selling price has increased by nearly £9,000. This reinforces the importance in setting a realistic asking price, rather than the highest price.”
Regional analysis shows that a Reality Gap does still exist in some areas of Scotland. In all regions with a Reality Gap, except Argyll & Bute and South Lanarkshire, the gap has narrowed.
Last quarter, properties in East Lothian, Glasgow/Dunbartonshire and North Lanarkshire were generally selling for less than their asking price. This quarter however in both Glasgow/Dunbartonshire and North Lanarkshire properties are on average selling for £2,500 more than their asking price while properties in East Lothian are typically selling for £500 more.