‘Unusually’ short supply of homes forcing up prices
An unusually short supply of homes for sale to meet increasing demand is continuing to force up prices across Scotland, according to the latest RICS Residential Market Survey.
The disparity between demand and supply in the first quarter of 2022 is expected to extend into the April to June quarter with more respondents anticipating a continuing rise in property prices.
However, there is more optimism for the second quarter of the year in terms of expected activity with a net balance of respondents forecasting an increase in sales.
David Cruickshank of D M Hall said: “The residential market is still characterised by an unusually short supply of property at every level and abnormally high demand. This has resulted in closing dates, high offers to exclude competition and rising property prices.”
John Brown of John Brown and Company added: “The high cost of moving and limited choice is restricting supply, particularly of traditional family homes. Prices reflect the competition for period properties.
“The interest rate increase and higher household costs will come into effect and with fuel cost increases, out of town markets will lose impetus.”
Grant Robertson of Allied Surveyors Scotland said: “The continuing squeeze on sales stock together with the restricted release of new homes to the market has resulted in the bull market continuing.
“Multiple offers at closing and offers often sitting 20% or more over the home report value. With the squeeze on household incomes, something has to give.”