TSPC House Price Report: April-June 2023

05 July 2023

Property market data: Key points

• The average property selling price across Dundee, Angus and North Fife rose 1.62% annually to £181,623 during April-June 2023.
• The median selling time for a property remained at 16 days with no change year-on-year.
• The volume of properties sold during this time declined 35.5% annually.
• The number of properties coming onto the market during April-June decreased 11.5% year-on-year.
• Buyers paid 101.8% of Home Report valuation on average, down 3.1 percentage points on the previous year.
• 76.3% of homes sold during April-June 2023 achieved their Home Report valuation or higher.
• 12.5% of properties for sale during April-June 2023 went to a closing date.

Property prices rise as Angus locations gain popularity

Average property selling prices in Dundee, Angus, and North Fife experienced a notable upswing during the April-June 2023 period. Compared to the previous year, prices rose by 1.62%, demonstrating a positive year-on-year growth. Moreover, when compared to the pre-pandemic market in 2019, there was a significant surge of 14.1%. These increases indicate a healthy number of buyers in the property market despite the current financial climate. Additionally, properties in Angus are gaining popularity as they attract increasing attention from buyers.

Brechin homes witnessed the most substantial surge in average selling prices, with an annual increase of 32.3% to reach £171,232. Following closely behind, Arbroath homes experienced an 11% rise, reaching an average selling price of £168,856. These notable increases highlight the strong market performance in these areas and indicate growing attractiveness for sellers.

Properties in Broughty Ferry had the highest average selling price overall of £255,562. This reflects a year-on-year increase of 7.7%, reaffirming its ongoing popularity amongst buyers. The rising average selling price suggests that investing in a property in Broughty Ferry can be a favourable long-term investment, with the area retaining its desirability and potential for growth.

The figures show that 76.3% of homes that sold during April-June 2023 achieved their Home Report valuation or higher, down 7 percentage points year-on-year, which highlights that buyers are being slightly more cautious with the prices they are willing to pay.

Among the properties available in Dundee, Angus, and North Fife, one-bedroom flats emerged as the most affordable property type. These flats had an average selling price of £72,823, presenting an attractive option for both first-time buyers and property investors.

A reduction in closing dates and lower bids shows the market is settling

During April-June 2023, the property market demonstrated ongoing signs of rebalancing, influenced by shifts within the broader economic landscape following the intense period of property market activity observed since the summer of 2020.

Buyers, on average, paid 101.8% of the Home Report valuation for the properties they purchased during April-June 2023. This figure reflects a decline from the previous year's average of 104.9%. The decrease indicates that the intense demand for property is gradually settling towards more "normal" levels last seen in 2019.

During this period, there was a decrease in the number of homes that went to a closing date, indicating a shift in seller behaviour. Sellers seemed more willing to accept favourable offers from buyers rather than waiting for a closing date, which may have delayed their own moving process. 12.5% of homes for sale went to a closing date during between April-June 2023, down from 15.1% in the previous year.

Sales volumes and new property listings decreased overall

The property market experienced a significant decline in sales volumes during April-June 2023, with a year-on-year decrease of 35.5%. Simultaneously, the number of new properties entering the market also decreased by 11.5%. These figures collectively suggest that the market is exhibiting a more cautious approach in the current climate. The decrease in sales volume indicates reduced transaction activity, while the decline in new property listings indicates a decreased supply of available properties. These trends highlight a market environment where both buyers and sellers are exercising caution and potentially taking more time to evaluate their options before making decisions.

Dundee saw the highest volume of properties selling and among the different property types, semi-detached properties sold in the highest volumes overall, followed by terraced homes.

Arbroath experienced a notable annual increase of 7.8% in sales volumes, indicating a growing demand for properties in the area. This upward trend, coupled with the substantial increase in average selling prices, highlights Arbroath's ongoing popularity among buyers.

Brechin also experienced a boost in sales volumes by 18.2% annually, further demonstrating the growing recognition among buyers that locations in Angus, such as Brechin, provide excellent value for money.

Time to sell unaffected by current financial climate

During the period of April-June 2023, the median property selling time across Dundee, Angus, and North Fife remained unchanged compared to the previous year, standing at 16 days. This stability in the median time to sell is reassuring, considering the current financial climate, where prospective buyers may require more time to arrange mortgages or assess their financial situations.

What does it all mean for the property market?

Lynne Hill, Centre Manager of TSPC, commented:

“In a typically busier time for the property market, the most recent figures show clear signs that the post-pandemic property boom is slowing, and adjustments are being made for increasing costs and other economic changes.

“With buyers and sellers becoming more cautious in the current financial climate, it's no surprise that the amount that buyers are willing to pay over Home Report valuation has decreased. Buyers are bidding more carefully to ensure long-term affordability for their chosen properties.

“Despite the slowdown, there are still encouraging aspects in the market. Angus locations such as Arbroath and Brechin maintain their appeal, witnessing a rise in property listings and higher average selling prices. Similarly, Broughty Ferry showcases its popularity, with a notable 7.7% year-on-year increase in house prices."

“It’s an interesting time for the property market, and so it’s more important than ever that buyers and sellers alike work with local property experts, like TSPC solicitor estate agents, to secure up-to-date insights and advice across the local market to help them at this all-important stage of their lives.”