ESPC House Price Report - February 2011
- In the three months to February the average house price in Edinburgh stood at £205,191 following an annual increase of 1.5%.
- The number of homes selling is around 50% below levels seen at the peak of the market.
- Although supply has eased recently, the number of homes for sale still exceeds the number of people looking to buy meaning market conditions continue to favour buyers.
- 75% of homes sold over the last three months at Fixed Price went for less than the asking price - up from 63% a year ago.
- East Lothian saw a sharp annual fall in the average price of 20.9%. This fall was fuelled by an increase in the proportion of smaller properties selling. Comparison of like-for-like sales shows home values in the area down by around 5% annually.
- The average house price in Dunfermline rose by 6.4% annually and now stands at £135,890.
- The likelihood remains that in most areas the average house price will ease back in coming months before levelling off during the second half of 2011.
The average house price in Edinburgh during the three months from November to January stood at £205,191 following a modest annual rise of 1.5%. Results across the City were varied however. In Stockbridge and Comely Bank for example the average price of a two-bedroom flat rose by 8% annually, whilst at the other end of the scale the average price of a three-bedroom semi-detached property in the City's suburbs was 13.6% lower than a year ago at £216,011.
David Marshall commented: "Due to the lower number of homes selling you would expect to see some volatility in the average selling price figures within the city. Overall though, we are definitely starting to see prices easing back from the high levels recorded last summer and we expect this trend to continue during the first half of 2011.
There are more homes on the market than at this time last year meaning buyers are in a stronger negotiating position now than they were 12 months ago and this is being borne out in the figures we're seeing. Over the last three months 75% of homes sold at Fixed Price went for less than the asking price, up from 63% during the same period last year.
Conditions remain challenging for sellers and those that are achieving sales are generally having to show some flexibility in negotiations. The good news for sellers though is that when it comes time to buy the shoe is on the other foot and they may well be able to secure their new home for less than they originally expected."
The average house price in East Lothian during the three months to February stood at £176,272 following an annual fall of 20.9%. The sharp decline primarily stemmed from an increase in the proportion of smaller homes selling rather than a drop in property values however. One-bedroom properties accounted for almost 13% of sales in the area - down from 8% a year ago - whilst properties with four or more-bedrooms made up less than 25% of sales during the last three months compared to over 32% a year ago.
David Marshall explained: "The mix of properties selling in East Lothian over the last three months was very different to that recorded last year. A greater number of smaller properties were sold which brought the overall average down this year. When you compare the selling prices of similarly sized properties values are broadly in line with those recorded last year. The average price of a one-bedroom flat stood at £102,587 - almost unchanged on £102,571 a year ago - while the average price of a three-bedroom house rose 3.6% from £189,621 to £196,424."
Elsewhere prices were largely unchanged over the last year. A 2.1% fall took the average house price in Midlothian to £162,889 while in West Lothian the average inched up by 0.6% from £178,422 to £179,580.
Fife & Kinross
In Dunfermline the average house price in the three months to February stood at £135,890. This followed an annual increase of 6.4% from £127,701 recorded during the same period a year ago.
David Marshall, business analyst with ESPC explained: "Following the credit crunch house prices in Dunfermline declined earlier and more sharply than in other areas. Over the last couple of years the market has stabilised and the relative affordability of property in the town makes it an attractive option for those willing to commute to Edinburgh. Conditions are still difficult for sellers though so it's important to get the asking price right from the outset to ensure you don't deter potential buyers."
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