Market Commentary

Friday, January 15, 2010

We are pleased to report that the market appears to be in recovery after a challenging 18 months when markets across Aberdeen and Aberdeenshire were affected by the credit crunch.  The good news is that Aberdeen has been less heavily affected than the rest of Scotland due in no small measure to the robust nature of the oil industry and the fact that loan to value ratios in the north east have traditionally been lower than in other parts of Scotland. 

The statisticians tell us that property prices in Aberdeen city fell by 2% in the last 12 months.  This is against a UK wide average price drop in the same period of 10%!  Clear evidence of the fact that Aberdeen has endured the recession comparatively robustly. 

The second, third and fourth quarters of 2009 each showed a modest improvement in the average price.  The average price in Aberdeen is around £74,000 higher than the Scottish average and £35,000 higher than the UK average.  The volume of sales, however, fell over last year.  Understandable given that less people were putting their houses up for sale when the belief was they might struggle to sell. 

Here at Simpson & Marwick we were particularly busy during the third and fourth quarters of 2009 with good demand across most sectors of the market. 

2010 got off to a slow start not least because of the snow and low temperatures that endured until early February.  This both held back would be sellers from listing their properties for sale and many prospective buyers from going out and viewing.  Hopefully the worst of the winter  weather is behind us and we can look forward to building back the stock numbers to meet the demand.  We are presently finding that in a number of sectors of the market premiums of 10% to 15% above home report valuations are being paid.

We want your property!  With long lists of applicants we are desperate for more stock in every sector of the market.  If you are thinking of selling please ring us for a chat or to arrange a valuation which we will follow up with a detailed marketing report and fee quotation all at no cost and with no obligation.  For further information contact our property partner Dave Geddie, e-mail david.geddie@simpmar.com