House price growth in Scotland eased to 1.3% to £220,351 in March compared to a year ago, amid signs that affordability issues “may be easing” despite a tough economic climate, data shows.
This follows annual home price growth of 2.8% in February, according to says the Walker Fraser Steele Acadata House Price Index.
However, monthly house prices were unchanged in March, after falling for three months in a row.
Walker Fraser Steele regional development director Scott Jack says: “Sales volumes too are improved on February this year and are up 36%.
“The subsequent increase in demand for purchases has put the brakes on the slide in house prices that started in December 2022.
“Given the economic headwinds facing the Scottish housing market, this month’s data is all the more remarkable.”
On a regional level, as the spring buying season takes shape, East Renfrewshire saw the largest increase in March with prices up 3.8% to £342,082 followed by Dundee up 3.5% to £170,464 and East Lothian, 3.1% higher at £323,141.
The study points out that Edinburgh is the only “high-value area” to see prices fall from a year ago, down 1.8% to £331,500.
It says average prices in the country’s capital are lower for all property types, except terraced houses.
But the report points out that last March Edinburgh saw the sale of the highest-priced semi-detached home of the year at £4m, the highest-priced flat of the year at £2.5m and the second highest-priced detached property of the year, at £3.5m, so, “it is perhaps not so surprising that the average price has fallen some twelve months later”.
Walker Fraser Steele’s Jack adds: “The longer days of spring have traditionally seen growth in housing sales in March in Scotland and this year is no exception.
“The affordability challenges that have deterred buyers in the first quarter of the year may be easing very slightly, especially for those who choose to move and take fixed rate mortgages that protect from further rises.”
