ESPC House Price Report - July 2013
ESPC's latest House Price Report from David Marshall.
- The upturn in buyer activity in 2013 continued in the three months to July, with total sales recorded by ESPC up by 24.1% annually.
- The number of homes coming onto the market also rose, though at the slightly slower annual rate of 15.1%.
- The improvement in market activity has led to a rise in the proportion of sellers using an Offers Over approach to market their property.
- The average house price in most areas remains at or below levels observed at this stage in 2012.
- There has been an increase in the percentage of sales where the Home Report valuation has been achieved – from 30.9% last year to 37.8% this year.
- Buyers at the lower end of the market continue to enjoy greater success in negotiating discounts against properties’ Home Report valuations.
Listen to it
Catch up with ESPC’s David Marshall and Lisa Venter on the latest House Price Report findings by listening to ESPC’s very own podcast series. Listen to the ESPC House Price Report July 2013 or by clicking the ‘play’ button below.
The improvement in activity in the East Central Scotland property market witnessed during the first half of 2013 continued into July. The total number of residential sales recorded by ESPC between May and July rose by 24.1% annually and to the highest level for that period since 2008.
Activity among sellers was also on the rise, with the number of properties coming onto the market between May and July up by 15.1% annually.
The increase in market activity has been accompanied by a rise in the number of sellers opting to market their property at Offers Over. This had been the most popular marketing method among sellers north of the border for much of the last decade but its use had declined following the economic downturn and the introduction of Home Reports.
Over the last two years though its use has started to rise again, with 40.1% of homes brought to the market between May and July marketed at Offers Over compared to 25.8% during the same period in 2011.
David Marshall, business analyst with ESPC said:
"Typically the Offers Over approach tends to be popular in more buoyant market conditions, so the shift we’ve seen is probably reflective of the recent upturn in market activity.
"Over the last three months properties sold at Offers Over have achieved an average of 4.4% above their asking price – up from 3.5% last year. It’s worth remembering though that at the peak of the market properties would typically go for between 25 and 30% above their asking price."
The improvement in market activity has not been matched by a rise in house prices, with the average house price in most areas at or below levels observed a year ago.
In Edinburgh the average house price declined by 1.4% annually to £219,772 whilst in East Lothian and Midlothian annual falls of 8.3% and 7.9% were observed taking the average price in these areas to £206,040 and £166,564 respectively.
David Marshall commented:
"Market conditions are improving for sellers but the balance of power still slightly favours buyers. The majority of homes are still being secured for less than their original Home Report valuation, though it’s worth noting that the percentage of sales where the valuation is achieved has risen from 30.9% to 37.8% over the last year."