On 2 April 2014, Mark Holden of GSPC, reported the good news that house prices in Glasgow and the West of Scotland rose by 7.4% in the last year. Transactions have also improved significantly with sales up by 30% on the same time last year and properties are taking on average 20 fewer days to sell than they were 12 months ago. Also according to the latest GSPC figures the average selling price in the area is now £120,000, up by £1500 on the previous quarter and by just over £8000 compared to the same time last year.
Professor Gwilym Pryce of Glasgow University who analysed the GSPC’s data stated “This is the largest annual rise in house prices in the West of Scotland since the end of 2007.”
He continues “It is, of course, too early to pronounce a housing market recovery based on a single quarter, particularly since we have already had several false starts. But it seems likely that the sustained fall in selling times together with a shortage of new properties coming onto the market will continue to put upward pressure on selling prices, at least in the near future”.
It seems the key issue is now one of supply. The number of properties coming onto the market remain well short of demand and stock levels are declining as a result. If prices do rise further, this will largely be due to a shortage of sellers.
