Residential Sales increase in the first quarter of 2010

APR 10, 2010

Residential property sales in west central Scotland rose significantly in the first quarter of 2010 despite atrocious weather in the first few weeks, a delayed spring and now a looming general election. But prices dipped by 3.0 per cent compared to a year ago according to the latest GSPC House Price Survey.

The analysis for the survey is conducted independently by Professor Gwilym Pryce of the Urban Studies Department at Glasgow University and includes more transactions in the west of Scotland than any other index (with the exception of the Registers of Scotland).

Paradoxically, however, the dip in prices could be a sign of continued recovery in the property market rather than the start of a ‘double dip'. According to GSPC Chairman, Michael Samuel, the apparent fall in prices could well be the result of a rise in sales: "In the first three months of 2010 we have seen rising sales of homes that have been on the market for some time. Until recently, these properties had been ‘stuck' on the market and so did not show up in the sales data. Now that activity has picked up to the point at which they are selling, they are included in our results and are depressing average selling prices. This is a result, however, of stronger, not weaker, demand.

"This would explain the many apparent contradictions we are currently seeing in the property market. Sales are almost 14 per cent higher than over the same period last year yet selling times have, apparently, lengthened. In some areas, properties are selling at closing dates for figures well above their Home Report valuation, yet average selling prices are lower. Those contradictions only make sense when you realise that rising sales will include some properties that had previously proved difficult to sell".

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