The average house price in Scotland fell by 0.1% in May, according to the latest Walker Fraser Steele Acadata House Price Index (Scotland).
Figures revealed that the average Scottish house price dropped by £250 to now sit at £203,811.
However, prices in Scotland have still seen an annual increase of 11.0% and are now more than £20,000 more expensive than they were in May 2020.
Walker Fraser Steele Business Development Manager, Alan Penman, said that the market has now “undoubtedly softened” in terms of transaction numbers.
“As the end of the Land and Buildings Transaction Tax (LBTT) holiday drew nearer, many purchasers made a concerted effort to bring forward their purchases into March 2021 to take advantage of the tax break,” Penman commented.
“The impact of the tax holiday should not be underestimated. The number of sales in Q1 2021 and compared with Q1 2020 are up by 39% quarter-on-quarter.”
However, Penman stated that the decline in transactions in the Scottish market since the end of March has “dampened prices slightly”. Before the more recent fall of 0.1% in May, average house prices also dropped by 1.2% in April.
“This must be seen in the overall context of an otherwise very resilient Scottish housing market,” Penman added. “The average house price in Scotland passed the £200,000 threshold in January 2021 and at the end of May now stands at £203,811.
“Many people will be wondering what next for Scottish house prices. The summer traditionally brings good tidings for sellers and buyers as longer days and better weather often means more viewings.
“Combined with a lack of overall supply, increased competition for the homes that are available can support values. But this market is unique and our collective confidence in the national response to the pandemic and appetite to continue moving as a nation at the current rate will underpin what happens next.”
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