House Price Report March 2023
12 April 2023
Property market data: Key points
- During January-March 2023, the average selling price of property across Dundee, Angus and North Fife was £175,164, an increase of 9.3% year-on-year and an increase of 10.9% compared to the January-March 2019 pre-pandemic market.
- Sales volumes were down 25.6% annually during this period and new property listings decreased by 9.1%.
- On average, properties attained 104.2% of their Home Report valuations at sale, with 71.8% of properties selling for their Home Report valuation or higher.
- 11.3% of properties went to a closing date during this period versus 8.2% in 2019.
Dundee, Angus and North Fife homes see selling price increases
The first quarter of 2023 saw the 11th consecutive rise in interest rates, by a quarter of a percentage point to 4.25% in an attempt to slow rising inflation. It follows months of upheaval since the mini-budget in September coupled with the rising cost of living but the housing market is still performing well with plenty of interest in quality homes. Post-pandemic, the property market experienced a lack of housing stock, high selling prices and quick selling times. However recently, the market has shown signs of cooling down and returning to more normalised levels last seen in 2019.
During January – March 2023, Dundee, Angus and North Fife recorded the average selling price of homes as £175,164, an increase of 9.3% annually.
By way of context, from January – March 2019 which can be used to compare to the pre-pandemic norms, the average house price was £157,998, highlighting the high demand for properties over the past four years has pushed prices up.
Properties in Broughty Ferry had the highest average selling price at £251,058 – 27% higher than 2019. Monifieth was also a popular location, with homes selling on average for £228,508 – 17% higher than 2019.
The most affordable property type in Dundee, Angus and North Fife was one-bedroom flats which sold for an average of £80,254.
Volume of property sales reduces as market cools down
The market in Dundee, Angus and North Fife is rebalancing following the post-lockdown period of 2021/2022 where demand and activity in the housing market was higher than the norm. The decline in sales volumes annually was 25.6% with property listings down 9.1%.
Although Dundee had the greatest volume of homes listed for sale, levels were down 7.6% annually. In contrast, a 35% increase in listings was recorded in Arbroath.
Areas across Dundee, Angus and North Fife that continue to prove popular and recorded an increase in sales annually include Carnoustie (38%) and Newport, Tayport and Wormit (100%).
Monifieth saw a considerable reduction in sales year-on-year with a decrease of 63.6% meaning property sales in this area have reverted to pre-pandemic levels.
In terms of property types, three-bedroom houses in Dundee performed best indicating that it is a popular area for families to reside.
Buyers face strong competition for their dream home
With fewer properties on the market, it’s no surprise to see increased competition for property in Dundee, Angus and North Fife during January – March 2023.
Overall, the market is continuing to perform well with homes selling quickly albeit at a calmer pace than we’ve seen in previous months when demand significantly outweighed supply.
Buyers are still willing to pay over Home Report valuation in order to secure a property in Dundee, Angus and North Fife, albeit at significantly reduced level than last year. On average, properties attained 104.2% of their Home Report valuation during January – March 2023, compared to 111.9% achieved in 2022.
What does it all mean?
Lynne Hill, TSPC Manager explains: “The most recent house price data from TSPC gives a clear overview of how the rising cost of living and financial market changes have impacted the local property market.
“From January to March 2023, new property listings in Dundee, Angus and North Fife were down by 9.1% year-on-year as homeowners waited to see how the market panned out before listing a property for sale.
“There were some areas however that bucked this trend, notably Arbroath which saw a rise in new property listings both annually and in comparison to the 2019 pre-pandemic levels (an increase of 35% and 6% respectively).
“In terms of property sales, volumes across Dundee, Angus and North Fife reduced by 25.6% annually, with localised rises and falls in sales volumes highlighting regionalised variations in the property market. As highlighted, Carnoustie and Newport, Tayport and Wormit recorded higher numbers of properties listed for sale versus the previous year and Monifieth returned to a normalised level.
“The overall experience of TSPC and its member solicitor estate agents is that demand continues to exceed supply and the market remains competitive.”