As we carry out valuations, one of the most common questions at Clyde Property is which property type is most in-demand. The largely depends on the area. For example, with city centre properties, many buyers are looking for apartments. In regions with excellent schooling options, such as East Renfrewshire, family homes with three or more bedrooms are extremely popular.
On a national level, according to Rightmove, the number of sellers accepting offers on homes for sale is back to pre-pandemic 2019 levels. This means we are returning to a more ‘normal’ property market. The last few years have been unprecedented.
When the pandemic hit, people withdrew offers and homes for sale to see how the market would pan out. There was talk of house prices collapsing, so no one could have seen the rise in house prices coming. As soon as the property market opened back up in June 2020 after three months of the world (and effectively the property market) shutting down, demand started to rise steadily. People were homeschooling, home working and could not go on holiday, so outside space was at a premium. People also re-evaluated their lives and realised they didn’t need to be close to the office or public transport as home working became the norm. People also moved away from open-plan living and wanted to be in more rural locations. The demand for homes continued until about 18 months ago, when mortgage rates started to rise. By then, the average home in the UK had risen by £45,000, and in many cases, people had seen an even more significant rise.
Last year was an interesting year for the property market. At the beginning of the year, we were still seeing homes sell at record-fast times, with record prices and many disappointed buyers per home sold. Demand was still high, and supply frustratingly low. Things started to change in the summer of 2022. The market became steadier; interest rates went up, the cost of living was high, inflation was at an all-time high, and demand eased. Following the mini budget, there was uncertainty in the financial markets and a sudden upturn in mortgage rates, and some products were even pulled from the market. As a result, buyers put their plans on hold.
As a result, since September 2022, the number of properties sold has been back to pre-pandemic levels. This is a positive sign as it means that instead of a predicted ‘crash’ by some, things are simply stabilising, and prices are correcting. Many people have made significant gains over the last two years and can afford for house prices to fall somewhat.
Although many buyers were looking for homes in rural areas and to be close to outside space during the pandemic, there has been a reversal of the trend this year as people return to cities. More sales have been agreed on flats, which are now 11% higher than in March 2019. Sales agreed on flats in London are up 23% compared to the same period in 2019.
There is a 2% rise in sales agreed in Scotland compared to 2019.
If you’re considering selling your home, it must be priced correctly to have the best chance of finding a buyer quickly and preventing you from reducing your asking price later.
Clyde Property is a leading independent, multiple award-winning estate agent with over 30 years of experience in selling and letting property in Scotland. Call your local Clyde Property branch today for friendly, impartial advice on letting and renting property.
