Over the last month, there appears to have been an anomaly in the local property market, whereby asking prices in the city have remained the same, yet property values have increased.
Over the last month, there appears to have been an anomaly in the local property market, whereby asking prices in the city have remained the same, yet property values have increased. The average asking price of a Dundee property, according to Rightmove, remained the same this month yet the average value of a Dundee property rose by 1.5%.
So how does this relate in monetary terms? This anomaly means the average asking price of a Dundee property stays the same at £143,700 whilst the average value is now £157,700. You will note the average value is higher than the average asking price. This is because, in Dundee, there are more properties on the market for sale, at this moment in time, which are in the lower to middle market, than the middle to upper market, thus reducing the overall average asking price.
So why the difference? Technically an ‘asking price’ can be any price that a homeowner wants to place his or her property on the market for. Unfortunately, many times this is done without research and can result in overpriced properties that don't sell. As the Summer months are normally slightly quieter those left on the market wanting to sell often temper their asking prices in these months to try and generate interest in their property.
On the other side of the coin, the property ‘value’ is the price that a willing buyer is prepared to pay and a willing seller is prepared to sell at.
In previous articles, I have spoken about the continued fundamental shortage of property coming on to the market compared to buyer demand. That is especially true for homeowners wanting to upgrade to a better house/better location. I can appreciate Dundee home owners are reluctant to put their own property on the market speculatively and wait for the right property to become available and some high demand locations can suffer from a property stalemate.
Most homeowners don’t want to sell and have nothing to buy.
Landlord/Buy to let investors can normally pick up some bargains in the Autumn months, as sellers who are selling their homes often have a pressing need to sell by this time. The types of houses a Dundee landlord typically buys, are not the same types as the homeowners wanting to move to a posher area of the city as they are attracted by larger semis and detached properties. The best types of properties for buy to let are the smaller flats, terraced and semis (not the big detached ones).
If you are a landlord or thinking of become one for the first time, and you want to read more articles like this about the Dundee Property Market together with regular postings on what I consider the best buy to let deals in Dundee, of the properties on the market, irrespective of which agent is selling it, then you might like to visit the Dundee Property Blog www.dundeepropertyblog.co.uk