The average house price in Scotland rose by more than £23,000 last year, with data from the Bank of Scotland showing that the value of property jumped by 10.9% across the country.
For Greater Glasgow, the picture was better still, with house prices rising by 13.6%, which even outstripped neighbouring Edinburgh. The overall growth in house prices makes for encouraging reading for those looking to sell, and further confidence can be found in a recent survey of our own that found 78% of buyers are still determined to move home next year, with 36% saying they are more motivated than ever to move.
With demand for property in the most sought-after areas remaining as strong as ever, we are likely to see a continuation of the supply & demand dynamic which has played out since the pandemic boom of 2020 that has helped move house prices on an upward trend.
The prophecies of a house price collapse that were liberally bandied about toward the tail end of last year have dissipated; Savills vocally predicted a 10% drop in 2023, whilst Rightmove went as far as claiming a 20% drop was on the horizon. More recently, however, feelings on that front have cooled, and Nationwide’s analysis forecasts that house prices will ‘soften’ rather than plummet, and in general, we may see some areas recede by up to 5%.
Mortgages are also expected to settle much lower than previously anticipated, likely somewhere between 3.5% to 4.5%, according to the publication This Is Money which is a far cry from near 7% highs in Q3 of last year. Whilst this will still put affordability pressures on elements of the market, the outlook on rates is undeniably less gloomy than was initially suggested in the wake of the disastrous mini-budget.
As mentioned earlier, however, the demand for quality homes in the more desirable locations has remained strong, and significant enquiry levels, viewing numbers and offers are still being made.
It is fair to say that some of the price extremes of 2021 are likely a thing of the past for now. However, the market remains irrefutably buoyant, and sellers can still expect to entertain solid offers if their home is marketed appropriately. Partners Marc Leslie, Chris Breckenridge & Alastair Reid discussed this topic in a recent market report which you can view here.
We may only be in the earliest throws of the year, but the phones within our branches are ringing, and the market is moving. What the next 12 months have in store, we will just have to wait and see, but the initial indications are encouraging.
