ESPC House Price Report July 2016
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Key findings
- The number of homes sold in east central Scotland between May and July of 2016 decreased by 8.4% annually.
- The average selling price in Edinburgh increased by 8.2% between May and July of this year, compared with the same time period in 2015.
- The percentage of sales achieving or exceeding their Home Report valuation rose from 61.4% between May and July of 2015 to 70.8% in 2016.
- The average selling price in east central Scotland between May and July of this year has increased by 7.0% when compared with the same period last year.
- The median selling time in east central Scotland is 40% faster when compared to the same three-month period a year ago – from 34 days down to 21 days.
Average selling prices increasing post-Brexit
Average selling prices across east central Scotland have increased by 7% in the last three months, while the number of properties being sold has decreased by 8.4%, according to the latest analysis by leading property experts ESPC.
The analysis, covering sales and listings between May and July 2016, has revealed that the number of properties being sold has continued to decline since the EU Referendum along with the number of new properties being put on the market.
The shortage of properties available is likely to put pressure on prices as buyers compete for fewer available properties, and some areas in east central Scotland have seen significant increases in average selling prices. Average selling prices for three bedroom homes in Currie, Balerno and Juniper Green have increased by 27.1%, one bedroom flats around Leith Walk have increased by 17.9% and two bedroom flats in Bellevue and Broughton have increased by 24.4% since this time last year.
ESPC business analyst Maria Botha-Lopez said: “What we’re seeing is that sales volumes started coming down in the period before the outcome of the referendum, and have continued to do so. This is not due to lack of buyer demand, but rather due to decreasing levels of active stock and fewer properties coming to market to replenish those that have sold. The summer months are typically a quiet period for the property market as people go on holiday, and while some people may have deferred their decision to put their property on the market we will have to wait and see what the effect of Brexit has been over the coming months.”
“Average selling prices have been driven up by the lower volumes of properties on the market, with all the indicators of a seller’s market still in place. 83.7% of properties listed between May and July 2016 were marketed as ‘offers over’, compared with 70.9% in 2015, while the median time to sell is now 21 days.”
Paul Hilton, CEO of ESPC said: “We conducted a survey with our members to find out their views on the property market after the referendum, and they indicated that there has been little change in post-Brexit landscape, and sales have continued to go through. Some of our solicitor estate agents also told us that Brexit has been used as a renegotiation point with some buyers hoping to get a discount on a property purchase, however because most properties are going to closing date and receiving multiple offers, renegotiations on an offer have not proven to be successful. We will need to wait a few more months before the impact of the referendum is clear, but we are continuing to see a seller’s market, meaning it’s a good time to put your property on the market.
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