Home Prices Decrease as Buyer Confidence Increases

Between June and August this year, 74 per cent of the properties came to market as ‘offers over’, compared with 36 per cent between June and August 2013 and 54 per cent between June and August 2014.

Properties sold between June and August of 2015 that had been marketed as offers over achieved an average of 6.7 per cent over the asking price, up from 6.3 per cent last year, which could explain why sellers and their solicitors have confidence to market property with “offers over”.

The percentage of sales achieving the Home Report valuation rose from 57.8 per cent between June and August of 2014 to 61.5 per cent in 2015. In addition to this, selling times are now 8.3 per cent faster when compared to the same three month period last year.

The period between June and August of 2015 saw a rise of 10.3 per cent in the number of homes sold in east central Scotland, compared to the same time last year. This shows an increase from last month’s house price report, where analysis showed there had been 4.1 per cent increase in homes being sold.

The average selling price across east central Scotland is still slightly below last year, at a decrease of 1 per cent between June and August this year, compared with the same period last year.

Maria Botha-Lopez, ESPC’s business analyst, said: “We are seeing that sellers have more confidence in putting their property to market with offers offer, rather than fixed price. In the current conditions, these properties are likely to achieve an average of 6.7 per cent over the asking price, or offers around, which explains why it is back to becoming the popular way to sell.

“We continue to see a decrease in the number of homes being brought to market, although not as pronounced as the previous report where we saw an 8.8 per cent decrease, we’re now seeing a 5.6 per cent decrease. However, this continues to place additional strain on the balance between supply and demand.”

Key Findings