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House prices decline in most areas of Scotland

The number of homes on the market remains 40% above levels normally seen at this time of year meaning there is greater competition amongst sellers, allowing buyers more success in negotiations. 68% of properties bought at Fixed Price during the last three months were secured for less than the asking price, up from just 53% at this stage last year.

David Marshall, business analyst with ESPC said: “Over the last few months trends in the market have been fairly consistent. House prices continue to edge down from the high levels reached during the first half of 2010, essentially taking
prices back to 2009 values.

“Concerns over job security and low mortgage availability continue to constrain demand at a time when the number of homes on the market is above seasonal norms so there is a high level of competition amongst sellers. This puts buyers who are able to secure mortgage funding in a strong position when it comes to negotiating on price.

“We expect house prices in coming months to remain below 2010 levels with annual falls of between 3 and 5% likely. Continued low interest rates mean that many sellers are not currently under pressure to sell, but those wishing to secure a quick sale will have to be realistic in setting their asking price to avoid deterring potential buyers.”

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