By Paul McTamney – Property Valuation Manager, Burnside
House prices in parts of South Lanarkshire are now at or above the peak levels seen in 2007/08 before the onset of the credit crunch.
A continuing shortage of supply and increase in demand has led to a significant imbalance in the market where closing dates and offers being received far in excess of Home Report value are becoming something of the norm.
Within our core areas of Burnside, Rutherglen and Cambuslang, we have seen average selling times cut to as little as 2-3 weeks for correctly priced and well-presented properties in key locations. In some cases, our strong relationships with prospective buyers has enabled us to agree off-market sales with the minimum of fuss.
Demand for family homes between £150,000 and £250,000 is at an all time high, with premiums of between 15 – 25% being achieved over asking prices. The upper end market for both modern and traditional homes ranging between £250,000 and £400,000 has also remained very buoyant and we have seen many of our properties achieve closing dates and premiums of between 5- 10% over Home Report value.
Burnside remains one of the most sought after areas and demand for traditional stock in the heart of the area is very strong. In particular, there are many downsizers looking to secure their next home in the form of lower quarter villas, semi-detached and detached bungalows.
Rutherglen and Cambuslang have several ‘hotspots’ where sale times are at their shortest. A resurgence in the number of buyers looking for family homes within the school catchment area surrounding Stonelaw High School and Calderwood Primary School has been a key factor in helping to set new record prices for the area. A 3 bedroom house in the area was sold by us over the course of a weekend for an offer more than £18,000 over its £170,000 Home Report value.
New build properties have thrived in the current market thanks to limited choice of established properties and the appeal of a new build home. But buying a brand new home is not always as simple as one may think. With high levels of demand, builders are frequently only accepting reservations from buyers who have sold their properties well in advance of completion dates. As in all these cases it is always an advantage to the buyer to have their property sold in order to negotiate better terms with the builder.
In short, the market has changed a lot in the last 12 months and it is now firmly a sellers’ market. On almost a daily basis we hear the same questions from buyers; How much over the asking price is the Home Report likely to be? Which properties will sell quicker than others? How much do I offer?
Having an understanding of this fast paced market and which properties in which locations are likely to attract most interest is key to securing your next property at the right price.