Average property prices in Glasgow and the west of Scotland are lower than they were 12 months ago, despite a marked increase in activity in the housing market in these areas, according to the latest market report from GSPC.

Property prices in the third quarter of 2013 were 17% higher than Q3 2012, and 5% up on the second quarter of this year. Selling times have also contracted and are now 16% lower than they were this time last year.

Homes are selling on average almost three weeks faster than they were a year ago (95 days in 2013 compared to 114 days in 2012).

But the pick-up in activity has not translated into higher prices. In fact, average prices in Glasgow and the west of Scotland are now over 6% lower than they were at the end of September last year, falling from £124,000 then to £116,000 now.

Average prices are back at 2005 levels and 19% below their 2007 peak.

Professor Gwilym Pryce of Glasgow University, who analysed the sales data from GSPC, said:

“The west of Scotland housing market is not out of the woods yet, as the recent price falls indicate. But there are nevertheless signs that the market is on a longer term path to recovery. Most of the price fall reported here occurred in the last quarter of 2012 and the first quarter of this year, but the recent growth in sales is not reflected in rising prices. Indeed, it is possible that the increase in sales is partly triggered by sellers adjusting expectations to match market values”.

GSPC chief executive, Mark Hordern, added:

“It is clear that talk of a house price boom is fundamentally flawed. Sales and selling times have been steadily improving this year, but selling prices have yet to respond in most areas.

“Despite the news on prices, however, there has been a sea change in the mood of the market. Buyers are more decisive and have increasingly decided that they will buy, rather than they might buy. Sellers have greater confidence that their home will sell. Mortgage availability is steadily improving.

“In some areas demand has recovered to the point where typical properties in sought-after locations are being snapped up in a matter of days and there has been a noticeable increase in closing dates. Affordable family homes are in particular demand.

“It will take a long time for the market to recover in terms of transactions or price and any change is likely to be patchy, with some locations experiencing better conditions long before others. Nevertheless, the signs are that we will see a steady improvement in the market from here on in”.