Good news for sellers, prices are set to rise again soon – but buyers are starting to get more for their money in some areas. Here’s the latest on luxury house prices in Scotland.
The good times in the luxury homes market in Scotland might be coming to an end – for now at least. While expensive homes are still selling well, prices have dipped slightly, according to Savills.
The number of homes sold for over £500,000 between April and June this year was actually 18% higher than the same time last year. That’s on par with prime areas in England and Wales.
But things have slowed down since June, with fewer top-end homes coming onto the market and fewer sales happening.
Experts reckon it’s because buyers are a bit nervous, especially those needing a mortgage. Mortgage rates have been going up and the election made some people sit on their hands and wait.
The result? More expensive homes are sticking around on the market. The number of luxury homes for sale at the end of June was 24% higher than the same time last year. Sellers are also having to drop their asking prices more often to get a sale.
Small Dip in Prices but Still Much Higher Than Before Covid
The average price of a luxury home in Scotland dipped slightly by 0.4% in the three months to June 2024. But don’t panic yet if you’re selling – they’re still 15.2% higher than before the pandemic in March 2020!
Here’s a quick breakdown of how prices are looking in different parts of Scotland:
Cities:
- Edinburgh: Prices dipped slightly, especially for homes between £500,000 and £750,000. Buyers are being more cautious here.
- Glasgow: Prices are holding up better in Glasgow and are actually 1.3% higher than a year ago. Fewer posh homes are coming onto the market which is keeping prices steady.
- Aberdeen: Things are pretty flat in Aberdeen, with no real change in prices.
Outside the Cities:
- Near Edinburgh: Prices have stayed flat over the last year but are still a whopping 21.5% higher than before the pandemic. This is one of the strongest markets in the UK.
- Near Glasgow: Sales are strong, especially for homes under £1 million, and prices haven’t moved much.
- Perthshire: Prices have dropped a bit here (down 2.3% in the last three months) as there are more homes on the market than buyers.
- Angus and Southern Kincardineshire: This area has also seen prices dip slightly (down 0.5%) as buyers are becoming more hesitant.
What Happens Next?
Experts think the Scottish luxury home market will pick up again soon. Now the election is over, people will feel more confident about making big decisions.
The new Labour government is expected to cut interest rates, which will be good news for buyers (and sellers!).
Labour’s plan to charge VAT on private school fees could also mean more buyers looking for homes near good state schools, which could push prices up even more.
So, what does it all mean for you?
- Sellers: It might take a bit longer to sell your home, and you might not get as much as you’d hoped for – but prices are still much higher than before the pandemic. It’s still a good time to sell, especially if your home is in a sought-after area near Edinburgh or Glasgow.
- Buyers: You might be able to bag a bit of a bargain, especially if you’re prepared to wait a little while. Keep an eye out for homes that have been on the market for a while – you might be able to negotiate a good deal.