Concerns have been raised over the short term outlook of the Aberdeen housing market with people holding off selling their home.
House prices are showing “encouraging signs” with falling energy prices and reducing inflation playing their part according to north-east property experts.
But there is still uncertainty leaving many people wary to put their home on the market.
Despite this figures released by Aberdeen Solicitors Property Centre (ASPC) show property prices in the city were up 1.5% in the second quarter of 2023, compared to the first quarter of 2023.
There has been a decrease of 0.5% to the annual house price figure in 2023, compared to a year ago.
However, there is still a warning the coming months may not be so positive.
ASPC said: “While interest rates are at levels not seen for some time, there are some encouraging signs.
“Inflation has started to reduce, albeit gradually, and energy prices have come down.
“There may be a feeling of wariness regarding the short term outlook.
“One of the consequences of this may be that plans will be put on hold.
“People who do not have to move, but are planning to move, may delay, waiting for a clearer picture to emerge.”
Every area saw a price rise, with countryside figures increasing by an impressive 6.1%.
Prices on the up across Aberdeen
ASPC’s figures are based on a study by the Centre for Real Estate Research at Aberdeen University Business School.
They also show the house price change in Aberdeen over five years is 0.4% – a increase from house price of 0.2% reported in the previous quarter.
The price of a typical flat in Aberdeen increased from £121,454 to £122,971 in Q2, while semi-detached properties also increased from £187,829 to £190,690.
The detached homes market also saw an increase in price from £318,377 to £326.052.
ASPC chairman John MacRae said: “Despite the difficult conditions, there are some positive indicators.
“The second quarter figures are better than we might have hoped.
“At ASPC we see how individual cases progress. We are seeing good properties, well maintained, and well presented, selling quickly.
“Despite difficulties, our local market is holding up well. Sales are taking place and there are bargains out there, too.”
Surrounding areas performance
A total of 1,307 properties were sold through ASPC between May and June, a change of 41.9% compared to the previous quarter but down 14.6% compared to a year ago.
The amount of detached properties sold was down 16.7% compared to a year ago.
There was a mixed picture in terms of house prices outwith Aberdeen.
- Inverurie saw the average price of a detached home increase from £298,712 to £311,038 and semi-detached properties rose from £176,067 to £180,040.
- Stonehaven figures show the average flat increased from £127,342 to £128,860 while semi-detached properties dropped from £178,410 to £175,465 and detached homes increased from £312,319 to £313,211.
- Prices in Ellon have overall improved, with the detached market increasing from £265,857 to £274,433, semi-detached £157,096 to £159,670 and flats decreasing from £107,670 to £101,982.
- Properties classed as countryside all showed increases – the average price for flats went from £117,155 to £122,853, semi-detached homes £179,481 to £190,343 and detached houses £326,887 to £343,175.
Mr MacRae said: “While the figures are reassuring, it may well be that our local market will feel the strain of the general economic background and only time will tell whether the next two quarters will show some reduction in the indices.”