The latest quarterly house price report to be published by Scotland’s biggest property website shows no change in the Reality Gap, the difference between what house sellers hope to sell their properties for and the price they actually achieve, even though the average asking price fell in the last quarter of 2011.
The s1homes Scottish house price report reveals that the average asking price across Scotland fell by 3.33% to £166,494 in the 3 months to December. The average price that properties were actually sold for (as reported by Register of Scotland) also decreased from £163,068 (July to September) to £157,174 (October to December). This means the average property in Scotland is still selling for around £9,000 less than the asking price, the same as 3 months ago.
Mark Smith, Managing Director of s1homes said: “It would appear that while sellers are being less optimistic about the prices they can achieve, buyers are still able to come in with offers under the asking price in these market conditions.”
Commenting on the report, Stuart Ferguson of Allen & Harris Estate Agents said: “We continue to be in the midst of a price sensitive buyers market and uncertain economic times. Many vendors are willing to take a reduced offer if they themselves can then buy their new home at a reduced price. Buyers are very much guided by Home Report values but in Scotland, another positive sign has been many properties are taking less time to sell. If a newly marketed home is sensibly priced for the market, the chance of a quicker sale is then far greater.”
Across Scotland, the majority of regions saw an increase in the Reality Gap even though average asking prices were generally falling, as the average selling prices fell further. Glasgow / Dunbartonshire was the only area to see the gap narrow as the average asking price fell by more than the average selling price.
Edinburgh continued to buck the trend and is the only region where selling prices have over taken asking prices, resulting in no Reality Gap.
The report, published quarterly, samples around 25,000 properties advertised on s1homes.com every month and provides trends in the various property markets throughout Scotland. For more information visit www.s1homes.com/house-price-report.