Momentum is returning to the property market despite 2013’s slow start for the sector, according to one expert.
Peter Ryder, manager of Tayside Solicitors Property Centre, said underlying conditions had improved and he expected an increase in activity in the sector over the coming months.
He was speaking as TSPC revealed it had sold 1,029 properties in the first six months of the year a marginal reduction on the 1,059 homes which changed hands during the same period last year.
The total value of sales reached £136 million this year, midway between the £151.5m achieved last year and the 2011 return of £119.6m.
In the first six months of the year the flats market saw a slight decrease in overall sales, with the average price also dipping from £89,700 to £87,500.
Semi-detached villa sales were also down marginally, although the average purchase price barely moved at £127,700.
Detached villa sales were up 1.3% on the year, but the average price dipped from £225,300 to £222,200.
The star performer was the bungalow sector, with a 15% rise in sales in the period.
Mr Ryder said the early part of the year had been difficult, but lost ground had since been made up thanks, in part, to an April billed as the strongest since before the 2008 crash.
He said more buyers were now coming into the market, and increasing numbers of properties were being offered for sale.
“We are optimistic that, over the next three months, sales figures will certainly be higher than last year and probably the highest they have been in the last few years,” Mr Ryder said.
“The market has stabilised, so the majority of people we see are now paying around about the home report figure.
“That is good as it means people now know what they have to pay to get a property, when previously people were having to go way over the asking price.
“The mood has changed in the market quite a lot.”
Mr Ryder said the uplift in the second quarter had been driven by a strong showing from the all-important flats sector.
“We are beginning to see first-time buyers coming through,” he said. “That is very encouraging as the first-time buyer market has a ripple effect on the rest of the market.
“It is a combination of things: people who have maybe wanted to buy for some time have now had time to save up a deposit of 10% or 15%; and, secondly, it does look as though some lenders have started to loosen the purse strings slightly.”
Mr Ryder’s optimism comes just days after figures from the Perthshire Solicitors Property Centre revealed “definite signs” of an upturn in buyer activity. More than 400 homes were sold by member firms during the first half of the year.
“There is a real feeling of optimism locally, and some much-needed stability in the market,” said PSPC manager Anne Begg.
“Basically there are no downward trends to report and sales are similar to what they were in 2011, which is a very positive sign.”
Meanwhile, Fife firm Murray Donald is celebrating a summer boom, having sold properties worth almost £5m last month.
Property partner Douglas Kinnear was confident the picture was a sustainable one and would avoid peaks and troughs.
“We are delighted to report that property sales are on the up in Fife, and particularly in the East Neuk,” he said. “It would be wrong to imply that the market has fully recovered, but there are definite signs of stability returning to the market,” he said.
l Optimism has returned to the housing market in Scotland, with rising prices and steady demand for properties, according to chartered surveyors.
The Royal Institution of Chartered Surveyors residential market survey has found that 16% more surveyors reported house price rises in June compared with three months ago.
The outlook for future prices is also strong, with 31% more respondents predicting prices will rise in the coming three months.