Aberdeen house prices have fallen since the start of the year in what has been described as a “low point” according to north-east property experts.
Figures released by Aberdeen Solicitors Property Centre (ASPC) show property prices in the city were down by 4.5% in the first quarter of 2023, compared to the final quarter of last year.
The shift in value has seen the typical sale of semi-detached home in Aberdeen fall from £196,656 to £187,829.
There has also been no change to the annual house price figure in 2023, compared to a year ago.
ASPC said: “While this is slightly disappointing, it is not unexpected, given the general downbeat economic outlook, nationally.”
Every area saw a drop in figures, with Stonehaven the worst at 7.1%.
Decreasing prices across Aberdeenshire
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 0.2% – a decrease from house price of 1.2% reported in the previous quarter.
The price of a typical flat in Aberdeen decreased from £124,728 to £121,454 in Q1, while semi-detached properties also decreased from £196,656 to £187,829.
The detached homes market also saw a drop in price, from £322,149 to £318,377.
ASPC chairman John MacRae said: “While this is slightly disappointing, it is not unexpected, given the general downbeat economic outlook, nationally.
“Also, the first quarter is often the “low point” in each year.
“Given the rises in interest rates in recent months, it is not surprising that activity in housing markets, UK wide, has lessened.
“The effect on our local market is, currently, less than we might have expected. We are still seeing good levels of insertions, but sales in the first quarter are down.”
A total of 921 properties were sold in Q1 of this year, a change of -21.8%
compared to the previous quarter and down 24% compared to a year ago.
The amount of detached properties sold was down 37.8% compared to a year ago.
Surrounding areas
In Ellon, Inverurie, Stonehaven and countryside there has been a fall in all dwelling types.
Stonehaven saw the average price of a detached home decrease from £328,490 to £312,319 and semi-detached properties fell from £192,113 to £178,410.
Ellon figures show the average flat decreased from £113,212 to £107,670 while semi-detached properties dropped from £162,096 to £157,096 and detached homes from £273,092 to £265,857.
Prices in Inverurie haven’t improved either, with the detached market falling from £309,127 to £298,712 , semi-detached £184,487 to £176,067 and flats decreasing from £132,268 to £127,347.
Properties in the countryside all showed decreases – the average price for flats went from £118,430 to £117,155, semi-detached homes £183,156 to £179,481 and detached houses £330,950 to £326,887.
Recovery may or not be ahead
Mr MacRae said: “There are certain areas, satellite towns, where there is a shortage of family homes on the market, leading to atypical results.
“In these areas there appears to be competition for those properties, leading to closing dates and prompt sales.
“We are in a period of adjustment, so it is probably prudent not to read too much into these first quarter figures, until we can see what the second quarter brings.
“Our local market may be poised on the brink of a recovery, or not.
“We shall have to wait and see.”
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