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Property ‘reality gap’ is biggest in Argyll and Bute

The 'reality gap' between asking prices and selling prices for property in Argyll and Bute is bigger than in any other part of Scotland, according to new figures - though the gap narrowed significantly in the second quarter of 2014.

The 'reality gap' between asking prices and selling prices for property in Argyll and Bute is bigger than in any other part of Scotland, according to new figures - though the gap narrowed significantly in the second quarter of 2014.

The gap between asking prices and selling prices for property in Argyll and Bute is bigger than anywhere else in Scotland, according to a new survey.

But the so-called ‘reality gap’ in the area - the difference between what sellers hope to sell their properties for and the price they actually achieve - narrowed significantly in the three months to the end of June after the average selling price increased by £21,000 to £156,495.

The survey, by s1homes.com, found that the average asking price in Argyll and Bute for the second quarter of 2014 was £184,521, and the average selling price was £156,495 - a ‘reality gap’ of £28,026.

In comparison, figures for the first three months of the year were £182,434 and £135,504 respectively - a gap of £46,930.

Across Scotland as a whole, the report states that average asking prices for the second quarter of the year were £163,592, with an average selling price of £162,122 - a gap of 1.48 per cent, or £1,470.

Ewan Stark, managing director of s1homes, said: “Emerging evidence of the disappearance of the ‘Reality Gap’ is significant. The fact that properties are selling for more than asking prices is further proof that buyer confidence is continuing to grow in Scotland.

“But rising prices are not good for everyone as it can mean certain groups of buyers, such as first time buyers, can find themselves being outpriced. It is important the property market in Scotland continues to grow in a steady and manageable way.”

 

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