Our latest report shows home sellers at the higher end of the market continue to be unrealistic with their asking prices, as selling prices fall further.
The Reality Gap (the difference between what house sellers hope to sell their properties for and the price they actually achieve) is still widening at the upper end with the average selling price of detached houses now at almost 20% below the average asking price. Flats, semi-detached and terraced houses though are attracting offers over the asking price.
Overall, the s1homes Scottish house price report reveals a marginal widening of the Reality Gap with the average asking price across Scotland falling by almost 1.5% to £165,192, in the 3 months to December. The average price that properties were actually sold for (as reported by Registers of Scotland) decreased from £159,310 (July to September) to £154,810 (October to December), down almost 3%. This means that the average property in Scotland is now selling for around 6% less than the asking price, compared to 5% less in the previous quarter.
Mark Smith, Managing Director of s1homes said: “The picture of the market as a whole is still being affected by detached properties being priced at unrealistic levels leading to a significant Reality Gap. Selling prices are falling in the majority of areas and asking prices aren’t being reduced enough to close the gap. “
“I think what this shows is the market has been much quicker to adjust at the lower end, while the market at the higher end is particularly entrenched with almost no change at all in the very substantial Reality Gap over the past 12 months.”
With sales volumes down across Scotland, the majority of regions saw little or no change in the Reality Gap. However, Argyll & Bute and Falkirk both saw decreases in the Reality Gap, while East Lothian and South Lanarkshire saw increases.
Edinburgh has once again bucked the trend with the average property being sold for more than the asking price.
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.