Home Prices Edge Up as Sellers Hold Out for More

According to this article by Dean Herbert on August 12, 2013 of the Scottish Express, Scotland's flagging property market has taken another step towards recovery after both selling and asking prices for houses increased for the first time in a year.

The latest quarterly figures showed that between April and June this year, homes were sold for nine per cent less than their asking price, while the average price for a property stood at £153,102.

This marks a small decrease from 10 per cent in the first quarter of the year, as the gap between asking price and selling price narrows.

Despite the increase in asking and selling prices, those with property on the market can still expect to receive an average of £14,590 below their asking price.

The difference between the seller’s expectations and the figure they sell their property for is branded the “reality gap” in the figures released by property website s1homes.

The biggest reality gap is for owners of detached properties which are selling, on average, 18 per cent below their asking price.

Regionally, Stirling and Clackmannanshire saw the largest increase in the reality gap with properties there selling for 23 per cent below asking prices. Flats and terraced houses are fairing better with the average selling prices for both remaining higher than the asking prices.

Mark Smith, managing director of s1homes, said: “I think what this quarter’s report shows is that there are distinct signs there’s a bit more confidence in the overall market which is leading to prices starting to creep back up, particularly at the lower end of the market.

“That’s not necessarily good news for the first time buyer but will encourage those who see property primarily as an investment.

“What’s also apparent is that owners of detached properties are firmly sticking to their guns despite no evidence of buyers being willing to meet their expectations.”

The quarterly report was generated by comparing the asking prices of the 30,000 homes for sale on the s1homes site with the actual prices achieved as recorded by the official government agency Registers of Scotland.

It comes just a month after it emerged that sales have soared by more than eight per cent as the property market recovers from the slump.

The latest figures show the number of homes sold has grown year-on-year for the last three quarters.

Article Source:  http://www.express.co.uk/news/uk/421444/Home-prices-edge-up-as-sellers-hold-out-for-more