The month of May proved to be an exceptional one for the Greater Glasgow and Ayrshire property markets with the number of new listings coming to the fold jumping by 13.7% versus the same period last year.
This spike in year-on-year volume is an encouraging sign for the local markets as we await the true impact of the cost of living crisis and the rise in interest rates to take hold. Early signs indicate the property market in and around Greater Glasgow and the West Coast will remain buoyant and the acceleration in stock levels as we approach the summer months is a welcome indication that stagnation is a far-off concern.
What will happen with house prices is another question altogether, Nationwide reports that May saw a slight cooling in the rate of annual house price growth. Prices were 11.2% higher than a year ago, down from 12.1% in April.
The housing market, in general, has shown exceptional momentum and resilience in the face of rising inflation and interest rates. Demand is ultimately supported by a strong labour market and unemployment is at its lowest for over 40 years, with job vacancies at an all-time high. Additionally, the ratio of active buyers to available stock levels is such that it continues to push the price of property upwards.
The picture may change in the coming months. What the Bank of England decides to do with interest rates to combat inflation, a further increase in the energy price cap looming, and the general squeeze on the public pockets, will all have some sort of say in the direction of travel.
For now, though, the market in Greater Glasgow and the West Coast continues to have a spring in its step and the outlook for June and July looks increasingly positive.
by Gordon Daniel McGuire
Head of Marketing, Corum Property
