Scotland’s average house price fell by only £22 in August, to £223,655, according to the latest data from Walker Fraser Steele’s Acadata House Price Index.
There were 16 authorities with price increases in the month, and 16 with price falls.
Glasgow saw an increase in prices in the month of 0.4%, while in Edinburgh prices fell by 0.6%.
Looking at the movement in average prices some 12 months earlier, in August 2022 the market was similarly experiencing a stasis in prices.
Consequently, the change in average prices in August 2023, over the previous 12 months, has remained the same as in July 2023 at 0.6%.
This rate was the lowest recorded since May 2020, near the start of the pandemic, but on an annual basis the rate of change remained positive – unlike eight of the 10 regions in England and Wales, where house prices over the year are now falling.
Scott Jack, regional development director at Walker Fraser Steele, said: “In August 2023, the average house price in Scotland increased by £1,375, or 0.6%, over the last 12 months.
“This is the same growth rate as seen in July, and it is the weakest annual rate of growth since the near start of the pandemic in May 2020.
“However, the devil is in the detail at a more granular level where we can see the performance of regions is split.
“If we look at Edinburgh and Glasgow, two of the largest housing markets in Scotland with a combined 22% of market share, Glasgow saw an increase in prices in the month of +0.4%, while in Edinburgh prices fell by -0.6%, however this is perhaps due to Glasgow being more affordable (£211,000) compared to Edinburgh (£338,000).
“Lower levels of activity in the market are reflected in the volume of sales which, so far this year, are about 10% lower than the corresponding months of 2022.
“What this slowdown in activity does illustrate is that offers below the asking price are becoming more common.
“The restrained market sentiment may continue for some time, but with continuing strong earnings growth and the expectation that interest rates may be peaking from their July high, it could provide a soft landing for Scotland’s housing market.
“However rates need to continue in a downward trajectory to persuade buyers back to the market.”
