TSPC House Price Report: July - September 2023

05 October 2023

The latest TSPC House Price Report for the period of July to September 2023 offers valuable insights into the property market across Dundee, Angus, and North Fife. In this report, we delve into the key trends and statistics that paint a picture of the current property landscape in these regions.

Property market data: Key points

• The average property selling price across Dundee, Angus and North Fife decreased by 2.89% annually to £175,941 during July-September 2023.
• The median selling time for a property slowed from 16 days to 21 days year-on-year.
• The volume of properties sold during this time declined 15% annually.
• The number of properties coming onto the market during July-September decreased 17.5% year-on-year.
• Buyers paid 101.7% of Home Report valuation on average, down 4.7 percentage points on the previous year.
• 76.5% of homes sold during July-September 2023 achieved their Home Report valuation or higher.
• 9.4% of properties for sale during July-September went to a closing date.

Property prices see a dip for the first time this year

Average property selling prices in Dundee, Angus, and North Fife saw a decline in July-September 2023, marking the first such drop this year. The new average now stands at £175,941, reflecting an annual decrease of 2.9%. To put this into perspective, this decrease is notably milder than the 5.3% annual decrease experienced in Scotland's capital, Edinburgh, during the same period. This shift occurs amidst the backdrop of the current financial climate and the uncertainties surrounding the mortgage market. While a decrease in property prices may raise questions, it also presents a potentially enticing opportunity for prospective buyers looking to enter the market.

This change in average property selling prices is not confined to a single area; it's a trend that spans across Dundee, Angus, and North Fife. While the dip is modest on average, there are localised impacts. One notable example is Monifieth, where prices saw one of the largest declines of 15.2% annually, resulting in a new average price of £216,579.

It is important to note that these figures may be influenced by individual properties selling for extraordinary figures during July-September in both 2022 and 2023, which could affect the data, potentially creating the appearance of more significant fluctuations than actual substantial rises or falls in the overall property values of these regions.

TSPC Solicitor Estate Agents continue to sell homes above their Home Report value

The figures show that 76.5% of homes that sold during July-September 2023 achieved their Home Report valuation or higher. On average, buyers paid 101.7% of the Home Report valuation, reflecting a decline of 4.7 percentage points compared to the figures observed in the same period of 2022. This decline is a predictable outcome given the influences of affordability and the mortgage market on property prices.

9.4% of homes for sale had a closing date set, down from 15.8% last year – again, demonstrating how much the local market has cooled and continues to return most closely to figures seen in 2019.

Sales volumes and insertions both declined as market slows in comparison to 2022

After witnessing remarkable levels of activity in both 2021 and 2022, it comes as no surprise that we're now observing a calmer market, leading to a decrease in both sales volumes and property listings during July-September 2023.

In the broader context, sales volumes have decreased by 15% year-on-year, while new property listings have seen a decline of 17.5%. Among the areas within our coverage, Dundee emerged as the leader in terms of sold properties, followed by Arbroath and Broughty Ferry. When we look at property types, flats and semi-detached properties continued to be popular choices, witnessing the highest sales volumes overall.

Notably, Carnoustie experienced a substantial annual increase in sales volumes, showing a remarkable surge of 52.6%. Broughty Ferry also saw a significant boost in sales volumes, with an annual increase of 39%, highlighting TSPC's continued market presence and appeal in these regions.

Time to sell slowed by five days

While selected properties continue to attract offers within a matter of days, buyers now have the luxury of a bit more time to explore their options compared to the pace observed in 2022. The median selling time for properties in Dundee, Angus and North Fife extended to 21 days during July-September 2023, marking a five-day increase compared to the same period last year.

This adjustment reflects the evolving market dynamics and provides buyers with a slightly more relaxed environment for property browsing and decision-making.

What does it all mean for the property market?

Angela Wallace, Centre Manager of TSPC, commented:

“July-September 2023 has undoubtedly marked a shift in the pace of the Scottish property market, especially when we consider the extraordinary levels of activity observed in the preceding summers. While some of these figures may appear concerning, it is important to remember that property prices and demand are not falling as such, rather returning to a more normal base level.

“The impact of the current financial climate has clearly been felt, with both buyers and sellers exercising caution towards affordability, mortgages, and overall financial considerations. With the recent stabilisation of interest rates, we may anticipate this being reflected in forthcoming data, as buyers gain renewed confidence. Additionally, the decrease in mortgage interest rates for new products entering the market is a reassuring development that may reinforce affordability. The true impact on the market will become clearer in the months ahead.

“Despite the overall drop in demand, it's essential to highlight the positive aspects. The market is increasingly becoming accessible to first-time buyers, with reductions in the amounts offered over Home Report valuations and fewer instances of closing dates. This greater accessibility benefits those with tighter budgets and levels the playing field.

“The pricing strategy is absolutely key, whether you are buying or selling a home, and with access to unique market data, no one is better placed to guide you to property success than a TSPC solicitor estate agent.

“If you’re thinking of buying or selling a property in Dundee, Angus, or North Fife, contact your local TSPC solicitor estate agent today.”