After three years of continuous price volatility, the Scottish housing market has finally stabilised in the last twelve months, registering an annual growth of 4.7%, reports Lloyds TSB Scotland.
For the three month to January 2011, residential property prices dropped marginally by 0.3%, data provided by Lloyds shows. The average Scottish home now costs £162, 119.
New home purchases, though dropped by 16.5% in December over the same period in 2009, the down trend appears to have stabilised, said Lloyds TSB.
The number of transactions remained stable at nearly half of pre-recession level in the last four months of 2010, it added.
However, the number of total transactions for the full year rose by 7% over 2009.
“The first quarter of 2010 saw unchanged growth, but quarter two recorded robust growth of 1.3%, followed by trend growth of 0.5% in the third quarter”, said Donald McRae – Chief Economist at Lloyds TSB Scotland.
After witnessing price volatility for three consecutive years accompanied by a drop in sales volume to near half, the market has finally consolidated, said McRae.
“Average house prices in Scotland now are very close to the levels of 12 months ago. The pattern of quarterly falls followed by quarterly increases to give virtually static house prices over the year looks likely to be repeated during 2011”, he concluded.