The north-east housing market has been enjoying a “highly encouraging” period with sales and house prices continuing to climb throughout the year.
Prices for all house types across Aberdeen and surrounding areas have seen an increase during the second quarter of the year.
And estate agent Savills has revealed May as a record breaking month in the city for homes sold above £500,000.
Static interest rates and stabilised mortgage rates seem to have instilled a bit more demand and help to drive up prices.
Estate agents covering the Granite City and surrounding areas have all reported positive signs as the second quarter comes to a close.
‘Best offer’ scenarios returning
Property prices in the city were up 3.1% in the second quarter of 2024, compared to the first quarter of the year.
Laura Mearns, Northwood owner and director, believes Aberdeen may never return to the “halcyon days” of regular closing dates but signs are encouraging.
She said: “April to June was busy with a mix of property types proving popular. Affordable family homes have been attracting attention and selling close to valuation.
“City centre flats remain of interest to investors with first time buyers also being able to purchase bigger properties than previously but still within budget.
“Still not back to the halcyon days of regular closing dates and bumper prices (which may never be seen again) but with more interest there have been more best offers scenarios where there are a couple of keen parties looking to bid.”
Looking ahead to the next quarter Ms Mearns is expecting “positive activity” with a further increase in demand and prices.
She said: “Based on the number of valuation requests, this quarter, will most likely be busy with positive activity once the summer holidays are over and owners want to move on to their next chapter before winter sets in.
“With the interest rates static for now, hopefully this will further increase demand and drive up prices.”
North-east out of ‘hibernation’
Figures released by Aberdeen Solicitors Property Centre showed a total of 1,383 properties were sold through ASPC between April to June this year.
The average sale of detached homes in Aberdeen rose almost £10,000 in just three months to £325,534.
Fiona Gormley, Savills head of residential in Aberdeen, revealed she feared the north-east had gone “into hibernation”.
She said: “Amongst a backdrop of winter storms and a destabilised economy during the early part of the year, it felt as though the market in Aberdeen and wider north-east had gone into hibernation.
“It was therefore a relief that, in line with the housing market calendar, buyer interest picked up around Easter.
“May turned out to be Savills Aberdeen’s record month for prime sales.
“However, like many locations throughout the UK, the run up to the election caused buyers and sellers to pause for thought.
“Valuations on the whole are yet to see any increase, but if the market continues in this way, we could also see this start to be reflected in valuations in 2025.
“The outlook at this stage for the rest of the year remains positive and we should continue to see a high level of activity in the market.”
Aberdeen offers ‘value for money’
Homes priced under £500,000 have seen the most activity for Savills.
Ms Gormley said: “A closer look reveals the market below £500,000 to be the most active.
“Aberdeen homes at this level generally now offer good value for money and a more balanced market is attracting buyers and sellers.
“The exception is the troubled flats market (sub £250,000), where there continues to price reductions and stress sales via lenders and auction sales.
“It will find its level when stock begins to reduce, and it can once again demonstrate good value compared to other university cities.”
Looking towards the next quarter Ms Gormley expects more of the same as prices continue to pick up.
She said: “The expectation of a fall in the Bank of England base rate will come as welcome news and a renewed demand from mortgage-reliant buyers is likely to lead to a stronger second half of the year.
“Here in Aberdeen we anticipate more of the same in terms of values until the end of the year, with a return to nominal growth in 2025.”
Aberdeen housing levels high
New figures from Aberdeen Solicitors Property Centre (ASPC) show property prices in the city were up 3.1% in the second quarter of 2024, compared to the first quarter of the year.
ASPC chairman John MacRae said: “At ASPC we are finding levels of activity remaining high.
“This encourages us to think our local market may be starting a gradual recovery towards pre-Covid levels.”
Sales and purchases on the up
It’s a similar tale for solicitors and estate agents Gilson Gray which has also seen a surge in activity.
Associate Jennifer Leslie said: “The positivity reported at the end of the first quarter has definitely continued.
“We have witnessed increased activity over the last three months, with both sales and purchases up across the board, which is highly encouraging.
“In particular, there has been an increase in the number of flats sold over the last quarter and whilst there is still a high volume available for sale, this is extremely promising for the market.”