Categorized | International

Residential Real Estate Market on the Rise in Scotland

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For the third straight month, Scotland’s residential real estate market has experienced increasing property prices. The month-over-month increases have mitigated the year-over-year loss that the nation has experienced thus far in 2011.

The overall improvement can be attributed to the seasonal increase in home sales, something that has also been seen in prime areas of neighboring nations. The market in Scotland is expected to remain steady over the next two months, though some analysts believe that prices will slightly drop once again due to the change in seasons.

However, with interest rates continuing to hover at all-time lows, it is unlikely that the housing market will experience a significant drop despite the change in seasons. Even with the increases in pricing over the last three months, the average home price is far more affordable now than it has been in previous years. As such, the market may even continue to experience some growth.

Despite the record-low interest rates, analysts are quick to downplay any potential increases, as they point out that borrowing has become exceedingly difficult in the current market. The average potential homebuyer has a far more difficult time securing a loan in the current market due to stringent policies related to deposit requirements.

The prime real estate market continues to drive the increase in prices, as wealthy investors look to take advantage of low prices. As such, housing sales in the prime, wealthier areas minimize any losses experienced in housing sales in general. That trend is likely to continue, as the wealthy are able to afford the higher deposit requirements.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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