2012-Whatís in store for the North East of Scotlandís Property Market?
28th December 2011
2011 has been a year of false dawns-the early part of the year saw a steady increase in confidence amongst buyers until late July when the world returned to turmoil amongst the gathering eurozone crisis.
A strange thing happened from October 2011 onwards though In Aberdeen-lower priced properties (£60,000-£200,000) started to sell, albeit at around 5-8% below valuation-cash buyers seemed to sense that these properties offered very good value for money for their cash as against alternatives such as bank or stock market returns.
Sellers were content to accept these below valuation offers, in the hope that they in turn would be able to negotiate similar deals on the properties they wanted to purchase further up the property ladder and we see this continuing certainly for the first few months of 2012.
Confidence within the oil industry in Aberdeen appears to be very good with a number of projects having been approved and starting in early 2012 and this increased confidence about job security should allow oil company employees and contractors alike, to make the decision to move out of properties they have long outgrown, which should mean that there is a plentiful supply of 2/3 bedroom family properties for those moving up the property ladder in and around the city and its suburbs.
For properties below £500,000, we do not expect to see prices rise at all in 2012 above valuation as stock levels clear, but with limited availability above £500,000 we may see closing dates and prices around 5% above valuation being achieved later in the year.
The message then for buyers and sellers alike is to take professional advice very early on, so that the markets trends in the area you are selling and the area you are buying can be identified and analysed to ensure you sell and buy at the optimum levels.
However, as with 2011 the trends in the property market are ever changing each quarter with early quarters in 2011 acheiving 5% over valuation reducing to valuation mid year to 5% below later in the year which is the position I believe we are starting from in 2012
Watch this space and remember to tell everyone that estate agency fees at K.W.A.D are still 0.5%+ vat of the sale price going into 2012.
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