House Prices 10% lower than hoped
By Karrie Gillet of Herald Scotland
Homes are selling for 10% less than their asking price, according to a new survey.
The average advertised price in the first three months of the year remained almost identical to the previous quarter at £166,386, the s1homes Scottish house price report said.
But the average selling price fell from £157,197 to £148,764, meaning properties are now selling for about £17,500 less than the asking price, on average.
Mark Smith, managing director of s1homes, said: "After a reduction in asking prices at the end of 2011 and maintaining those prices in the first quarter of 2012, it would appear that buyers are now in the stronger position and are coming in with even lower offers."
The report, which samples about 30,000 advertised properties every month, found sellers of flats and terraced houses appear to be more realistic and are achieving marginally above their asking prices.
But for a detached house, selling prices are now almost 20% below the average asking price.
Most regions saw an increase in the "reality gap" even though average asking prices were generally falling, because average selling prices fell further.
In the previous report, Edinburgh was the only region where the reality gap disappeared. However, January to March saw properties in the capital selling for 10% less than the asking price, on average.
In Ayrshire, the gap increased even further as the average asking price increased to £151,277, despite the average selling price being almost 25% lower at £114,328.
Argyll & Bute, East Renfrew-shire and Renfrewshire/Inverclyde all saw marginal decreases in the reality gap.
Gina Pacitti, of Pacitti Jones Solicitors and Estate Agents, said: "For the first time since the start of the recession, we are seeing regular closing dates and properties selling for more than the Home Report valuation.
"A recovery in confidence always precedes any movement in prices, so it is no surprise that we have seen no movement in values."
Maurice Allan, managing director of Lindsays in Edinburgh, said: "Our Edinburgh and East Lothian offices have both reported numerous recent sales in excess of the Home Report valuation, but clearly there are many properties that are taking longer to attract offers."