30th April 2012 back to news

GS Residential Review for April 2012

Market conditions have remained relatively stable throughout April with many more properties coming to the market replacing those which have sold. However recent reports of a reversion to economic recession and the upcoming local elections may prove to be a distraction and serve only to undermine much needed growth in confidence. Sales periods are still prolonged in many instances although properties which have been available for some time are selling at reasonable levels due mainly to sellers still being willing to negotiate but at increasingly more realistic levels than has previously been the case.
Kevin MacDonalds, Associate, Inverness [Inset photo]

The market continues very much in a similar fashion to what we have seen over recent months, where newer stock , which is sensibly priced is selling, older stock - where prices have been sharpened up to reflect current market are also selling. The key is for sellers to be well briefed as to what is a realistic selling price and to ensure their expectation are realistic- if so there is a
reasonable chance of selling their property. Where sellers are not realistic they will struggle to find a buyer, buyers are better informed that ever. in some areas there is oversupply, but where the prices are realistic they have a better chance of finding a buyer in sensible timescales.
Craig Henderson, Partner, Glasgow

There has been an increase in Seller enquiries in the first quarter of 2012. The increased number of Home Reports signals an increased supply of properties to the market, whilst demand remains restricted as a consequence of strict lending criteria for mortgage funding. Easter holidays signalled a slow down in enquiries and, as a double dip recession is announced for the UK economy, the bargain hunting culture of the UK consumer is set to continue. A mindset has been encouraged, by advisors, for home buyers to offer below Home Report value, which threatens to drive down the value of homes in Scotland. As we enter the traditional 'buoyant' summer period, the news of double dip, continued employment uncertainty, and the high cost of living may dampen consumer confidence; we can only hope that homebuyers spring out of winter hibernation to ignite some much needed momentum to property sales.
Andrew MacFarlane, Associate, Hamilton