The Scottish housing market is currently riding an 11-year high. Based on that information alone, those looking to sell or remortgage should be rejoicing. However, when you delve further into the data, things aren’t quite so black and white. In fact, as is often the case, the housing market is hugely complex at the moment.
According to a report by Aberdein Considine’s Property Monitor, £3.4 billion worth of property was bought and sold in Glasgow between January and March 2019. That figure is the highest it’s been since the credit crunch of 2008. In tandem with that upswing, sales for Q1 2019 were up by 2.3% (£80 million) on the same period in 2018.
Asking vs. Selling Prices Show the Complexities of the Housing Market
Despite the upturn in activity, house prices have actually dropped by 1.7%. As per the data, the average value of a home across the city has fallen to £152,079. While that’s far from a crisis, the seemingly conflicting data suggests that homeowners may have to work harder to get the most value possible. Yes, there are more people willing to buy homes. However, it seems they aren’t willing to pay a premium.
Backing up this idea are current statistics on selling prices vs. asking prices. Reviewing the market, Zoopla found that sale prices across the UK were, on average, 3.9% lower than the asking price. That’s up by 0.6% on the same period in 2018. While there are multiple reasons for this discrepancy in prices, the takeaway is that owners need to take every advantage of every resource at their disposal.
As it always is, timing matters when you sell. The HomeOwners Alliance says the best time to sell is autumn, especially if the weather is mild. Summer can be tough because most people are on holiday. Conversely, the market often slows during the winter months due to adverse weather conditions and the proximity of Christmas. In practice, timing is an art, but modern tech has helped make selling and remortgaging a science.
Use Technology to Ensure the Time is Right
Using sophisticated algorithms, comparison sites can find buyers personalised mortgage offers and owners better remortgage rates. For example, online mortgage broker Trussle’s comparison software will actively review 12,000 deals and compare them to a user’s personal details. Although offline brokers have done something similar for decades, these online platforms have the power to review live data, which allows them to provide updated recommendations before a user finally locks in a deal.
In essence, technology has made it possible for buyers, sellers and homeowners to maximise their potential. If the credit crunch of 2008 taught us anything, it’s that we shouldn’t take anything for granted when it comes to the housing market. Even if one facet of the market is booming, other areas might be flagging. That’s certainly the case right now.
In Glasgow, sales are flying but this has come at the expense of value. Because of that, those looking to enter the market need to get their affairs in order before pulling the trigger. Conventional wisdom states that timing matters when you’re buying, selling or remortgaging. However, in a world where technology has transformed every aspect of our lives, we can now be more scientific than that. Although you can never account for the mysterious ways of the housing market, you can improve your chances of securing the best deals with the right timing and tools.