The report released by the Centre for Real Estate Research at the University of Aberdeen Business School, for the second quarter of the year, continues the trend disclosed in recent reports. We have seen signs that the local housing market has been improving and the second quarter statistics reinforce belief in a gradual but persistent improvement. The main points arising from the report are as follows:

• The quarterly house price change in Aberdeen is 2.1%
• The annual house price change in Aberdeen is 2%, and,
• The annualised house price change over 5 years in Aberdeen is -0.4%

While prices have, in general, steadily improved, there are still difficult areas. The stock of second hand flats is still stubbornly high, although small inroads have been occurring, reducing the level of stock very slightly. Notwithstanding, it is still very important, in marketing flats to present the flat in the best possible light. Well presented, realistically priced flats are selling through ASPC.

From an unrelated source – our Search Engine Optimisation report, for June – we learn two interesting and encouraging facts. Keywords related to purchasing flats have been an area of particularly improved performance for the Aberdeen page (in June). One of the most popular landing pages (in June) is the Aberdeen area page, which has recorded a 47% increase in organic traffic, year on year.

In simple terms this means that, compared to last year, traffic on our site, directed at flats, has seen a significant increase in activity. This may well result in greater activity in the sales of flats.

In other sectors of the market, numbers of transactions are down, year on year, by 11.3%. I think we should not read too much into that as 2021 was, possibly, still influenced by the impact of recovery of confidence after covid lockdowns and may prove to have been an exception.

A matter of some encouragement is the information in Figure 3 of the report. Activity in our local housing market increased to 28.97%. The corresponding quarter in 2021 had a figure of 27.46%.

In simple terms, I understand this to mean that a slow but steady increase in activity is happening. I also understand the information to mean that, on average, houses are selling at the asking price.

Given the general economic picture, and the peripheral political uncertainties, it will not be a surprise if progress continues to be of a modest nature, and we should not be downhearted if the second half of the year demonstrates a slight regression.

The full Q2 report for 2022 can be found here.