House prices falling rapidly in Scotland

macaque_2

Clearly the bear market is starting to gather its own momentum, and not before time. This has to be welcome news for younger generations.

The Edinburgh Solicitors Property Centre reports that in Edinburgh itself, house prices are down 3.6% annually and in East Lothian have dropped 5.3%.

Some property types have dropped particularly badly. The ESPC says three-bed suburban semis are now 15% lower in value than a year ago.

The ESPC also reports that there is a glut of properties for sale on the market, and says that 68% of properties which have sold went for less than the ‘fixed’ asking price – up from 56% a year ago.

Red_Doe

I don't usually follow house prices (I rent) but I have noticed locally house prices falling quite dramatically over the past few months. An example is a crofthouse that a couple of years ago would have sold for over two hundred thousand, is now up for sale at one twentyfive. That's quite a big difference.

HAMISH_MCTAVISH

Not everywhere in Scotland.....

The Aberdeen Housing Market Area has seen an 8% increase in
the average house price from £201,786 in the first quarter, to £218,326 in the second quarter of 2011.

This is the highest average quarterly house price that the Aberdeen
Housing Market Area has seen. The second highest was in the second quarter of 2010 at £213,358

Going4TheDream

'House prices in the west of Scotland slipped by another two per cent over the last year taking them back to levels they first reached in mid 2006 according to GSPC. But the fall is half what is what just six months ago, suggesting that the market is gradually stabilising. The average selling price of a property in Strathclyde is now £136,000, almost £3,000 lower than it was in the summer of 2010.'

Me and the Scottish OH have been looking for a smallish 2nd home in Ayrshire for a year now and to be honest haven't noticed a great drop in price in the kind of property or areas that we have been looking at so are not getting excited about the above news and I would hardly say house prices are dropping 'rapidly'?

IveSeenTheLight

macaque wrote: »

House prices falling rapidly in Scotland

Here's the data from the Registers of Scotland Executive Agency (equivalent to E&W's LR).

Hardly falling rapidly

IveSeenTheLight

Red_Doe wrote: »

I don't usually follow house prices (I rent) but I have noticed locally house prices falling quite dramatically over the past few months. An example is a crofthouse that a couple of years ago would have sold for over two hundred thousand, is now up for sale at one twentyfive. That's quite a big difference.

Got a link for it.
It could be interesting.

Thrugelmir

Regional variation?

House prices in Edinburgh and the Lothians fell further over the summer as potential buyers continued to stay away from the market.
The average house price in the capital dropped to £222,525 in the three months to the end of August, 3.6 per cent below the level in the same period last year, according to the Edinburgh Solicitors' Property Centre (ESPC).

It also reported a 5.3 per cent decline in East Lothian, taking the average price down to £223.347, and a 1.7 per cent slip in Dunfermline, where the average is now £139,073. But West Lothian and Midlothian saw increases of 7.5 and 5.8 per cent respectively, although low sales levels have distorted the price averages.

The latest figures are published a month after ESPC revealed that almost two-thirds of homes sold in Edinburgh and the Lothians in the past two years have gone for a price below their home-report valuation.

http://news.scotsman.com/scotland/House-prices-in-Lothians-fall.6831914.jp

regprentice

I live in west lothian, and certainly the 'commuter towns' are suffering... A colleague trying to sell in Bathgate tells me that every second house in his area is up for sale. There is simply no demand for these houses out this way, and many properties seem to be on the market for years not months (several within 3 streets of me for over a year)

I was born and raised in Aberdeen and am shocked and disgusted by the prices there, I and many others moved away because there wasnt a hope in hell of buying an affordable family home. the same is true of central Edinburgh and Glasgow. I work in Edinburgh and some of my colleagues commute from Perth, Dundee, Glasgow, Paisley and Stirling. I think this says more about the housing market and affordability than any survey.

This has to be welcome news for younger generations.

Seriously, with average houseprices at £160K? I paid £80K for a 3 bed semi 8 years ago and that was an absolute stretch to the limit of my affordability.I cannot conceive paying £160K for a house. I dont honestly think that we can claim that we are offering affordable housing to the younger generation while any kind of 'family' home costs in excess of £100K.

IveSeenTheLight

regprentice wrote: »

I live in west lothian, and certainly the 'commuter towns' are suffering... A colleague trying to sell in Bathgate tells me that every second house in his area is up for sale. There is simply no demand for these houses out this way, and many properties seem to be on the market for years not months (several within 3 streets of me for over a year)

I was born and raised in Aberdeen and am shocked and disgusted by the prices there, I and many others moved away because there wasnt a hope in hell of buying an affordable family home. the same is true of central Edinburgh and Glasgow. I work in Edinburgh and some of my colleagues commute from Perth, Dundee, Glasgow, Paisley and Stirling. I think this says more about the housing market and affordability than any survey.

This has to be welcome news for younger generations.

Seriously, with average houseprices at £160K? I paid £80K for a 3 bed semi 8 years ago and that was an absolute stretch to the limit of my affordability.I cannot conceive paying £160K for a house. I dont honestly think that we can claim that we are offering affordable housing to the younger generation while any kind of 'family' home costs in excess of £100K.

Whilst you moved away, there are many people who stayed and indeed moved to the area and have been able to buy.

I've discussed on previous threads about how unfortunately, home ownership is trending toward the more wealthy and we seem to be reversing to previous periods where renting was more widespread and acceptable.

It may seem harsh, but if property is not affordable to you whilst others can, then maybe you have to accept your situation or do something about it.

I doubt the market will sway to your needs whilst others can meet the requirements.

geneer

IveSeenTheLight wrote: »

Just to focus on Scotland as a whole, it appears that given the methodology by the ROSEA (non mix adjusting), which leads to a more noisy monthly data, house prices have been pretty stagnant over the last 4 years

I do not believe it is reasonable to suggest that flucations of 30K count as "stagnant".

Though it is interesting you've elected to review this data only since the very end of 2007.

IveSeenTheLight

Oh no, he's back.
The respite is over.

Let's take him off ignore for a moment and see if he has anything worthwhile to say

geneer wrote: »

I do not believe it is reasonable to suggest that flucations of 30K count as "stagnant".

Though it is interesting you've elected to review this data only since the very end of 2007.

Point 1 - We'll geneer, as you know, the ROSEA methodology does not mix adjust, which add to the noise of the individual monthly figures.
Therefore it's quite reasonable to understand that the fluctuations are affected by the very method of their calculation.
Unless of course you are of the opinion you believe that Scottish House Prices are so volatile to fluctuate £30k (approx 20%) over a few months

Point 2 - I didn't choose the very end of 2007. If you look closely the start date is exactly 4 years ago from the latest release.
Now I realise you don't realise that July is not the end of the year and you regularly try to utilise a 6 month gap in your figures, but nonetheless, the data is the data.

If you wish this to go back further, I'm happy to oblige.

How does this look for you?