The Aberdeen housing market is showing “a degree of resilience” despite a “downward shift” according to north-east property experts.
Figures released by Aberdeen Solicitors Property Centre (ASPC) show property prices in the city were up by 3.9% in the fourth quarter of 2022, compared with a year ago.
But the quarterly house prices figure has decreased to -0.8% in Q4 compared to 3.4% in Q3.
ASPC said “the market has shown some signs of lessening activity, but other signs of maintaining, broadly speaking, the modest recovery shown throughout 2022.”
The only location which saw growth was Stonehaven, with prices rising 0.4%.
Home prices across Aberdeenshire mixed
ASPC’s figures are based on a study by the Centre for Real Estate Research at Aberdeen University Business School.
They also show the house price change in Aberdeen over five years is 1.2% – an improvement from house price of 0.4% reported in the previous quarter.
The price of a typical flat in Aberdeen decreased from £126,733 to £124,728 in Q4, while semi-detached properties also decreased increased from £198,274 to £196,656.
The detached homes market also saw a drop in price, from £328,272 to £322,149.
Inverurie has seen a rise in flat prices but a fall in other dwelling types.
In both Ellon, Stonehaven and the countryside there has been been a drop in the price of flats.
In Inverurie, the average detached home decreased from £310,817 to £309,127 and semi-detached properties fell from £188,367 to £184,487.
Ellon figures show the average flat decreased from £115,986 to £113,212 while semi-detached properties dropped from £163,584 to £162,096 and detached homes from £277,579 to £273,092.
House prices in Scotland: Track the property values in your area
Prices in Stonehaven were more encouraging, with the detached market rising from £325,735 to £328,490, semi-detached £191,327 to £192,113 and flats decreasing from £137,054 to £132,211.
Properties in the countryside all showed decreases – the average price for flats went from £121,851 to £118,430, semi-detached homes £188,144 to £183,156 and detached houses £339,386 to £330,950.
‘Signs of lessening activity’ across market – though modest recovery mostly maintained
ASPC chairman John MacRae said: “Bearing in mind the severe dislocation to money markets, caused by the Kwarteng mini-Budget, and the consequent reaction of mortgage lenders, most folk were expecting housing markets to be badly hit.
“There have been reports of serious dislocation in England, and we expected to see something similar, here.
“What we have seen, however, is a market that has shown some signs of lessening activity, but other signs of maintaining, broadly speaking, the modest recovery shown throughout 2022.”
A total of 1,177 properties were sold in Q4 of this year, a change of -24.7%
compared to the previous quarter and down -20.6% compared to a year ago.
Mr Macrae said: “The fourth quarter is expected to be quieter due to perfectly normal seasonal fluctuations.
“What we see, therefore, this year, could be explained in those terms. I think we need to be careful not to read too much, either way, into the fourth quarter figures.
“I think we must expect there to have been some impact from the financial
uncertainties, and we should acknowledge that, just at present, it is difficult to be able to say anything definite about the 4th quarter figures, other than they are, perhaps, better than we might have expected.
“Purely on instinct, I feel our local market has performed reasonably well, given external factors, and I think we should expect activity to continue, at reasonably normal levels.”
Conversation