Properties in Scotland sold on average for £9,000 more than their asking price in the first quarter of 2018 with flats in particular selling for significantly more than the advertised value, new figures show.
The analysis from property website s1homes also shows that the average selling price is falling, however, down by over £1,000 to £174,900 while the average asking price remained steady, around the £166,000 mark, as in the previous two quarters.
Flats are typically selling for around £29,000 more than their asking price, similar to the last quarter of 2017 and the average asking price remained stable around £109,000 while the average selling price rose by around £2,000 to £137,747.
Terraced houses on average sold above the asking price, with the selling price £20,000 more than their asking price. Both the average asking price and the average selling price remained static with no significant changes from the previous quarter.
For semi-detached homes the average asking price rose 1% to £155,437 while the average selling price fell by around £1,000 to £162,804. The average selling price was £7,000 higher than the average asking price, some £3,000 less than the previous quarter.
Detached houses are the only property type where the difference between seller’s expectations and what they actually achieve exists as the properties are selling for less than their asking price. The reality gap narrowed to 10% in the first quarter, with properties selling for £25,000 less than their average asking price.
The average asking price of one bedroom and two bedroom flats increased, after having dropped in the previous two quarters. Three bedroom flats were the only property type that has fallen by nearly 3% taking the average price to £143,525.
The average asking prices of all house sizes have increased by less than 1% and four bedroom flats saw the biggest growth with the average price rising by £3,000 to £273,015.
The data also shows that the average asking price fell across six of the 13 regions covered by the index. The biggest drop was in Ayrshire where prices fell by 3% to £122,672, while the largest price increase was in Renfrewshire/Inverclyde where it rose by 4% to £128,218.
As expected, Edinburgh property prices soared in comparison to the Scotland average selling price. There was an increase of over £10,000 in the average selling price, with only a very slight increase in the average asking price to £233,615. ‘As in the final quarter of 2017, demand continues to outweigh supply,’ said Pauline Smith, senior property manager from Watt Properties
The figures reflect the confidence in the overall market with average selling prices across Scotland higher than asking prices, according to Martin Devlin, head of sales at s1homes.
‘What’s also apparent is that owners of detached properties are firmly sticking to their prices despite no evidence of buyers being willing to meet their expectations,’ he added.
