Trends still active around Glasgow
Housing market in west most buoyant since 2007
House prices increased by 4.7% in Glasgow and the surrounding area in the last quarter of 2015 against the same period last year, the largest annual house price increase for Q4 since 2007.
Selling times also continue to fall and are the lowest they have been for the past eight years. The median number of days a property stays on the market has fallen from 92 days to 84 compared to the same quarter in 2014, according to The Glasgow Solicitors Property Centre (GSPC).
The largest estate agency network in west central Scotland says that on average, successful bids for houses are now 2.3% above the asking price set by the sellers. This is a marked increase compared to the same time in 2014, when the difference was +1.2% and in 2013, when it was just +0.6%.
Austin Lafferty, director of the GSPC, said: “It might be slow, but there are definitely signs of an upward trajectory in bidding spreads. From 2009 to 2012 the average selling price of a home in the west of Scotland actually dipped below the average asking price so it is heartening to see they have increased to a 2.3% difference.
“However, current selling-asking price spreads are dwarfed by the enormous figures observed in the days prior to the economic downturn when houses were selling for more than 20% over the asking price on average.”
Professor Gwilym Pryce from Sheffield University, who analysed the GSPC’s sales data, said: “It is worth noting this renewed vigour currently seems to be strongest in the suburbs and surrounding districts rather than in Glasgow itself. Annual house price inflation is currently 3.1% in Glasgow compared with 6.1% in the neighbouring local authorities.
“The story of the West of Scotland housing market has been one of ongoing tentative recovery. There are no obvious signs of an impending slowdown, which is likely to be good news for sellers, but less good news for buyers if prices continue to rise at a faster rate than wages.”