ESPC House Price Report June 2014
- Between April and June the number of homes sold across Edinburgh, the Lothian's and Fife rose by 32% annually.
- The number of sellers bringing their home to the market was 10% higher than during the same three month period in 2013.
- House prices are rising in most areas of East Central Scotland. In Edinburgh the average house price now stands at £223,924 having risen by 3.9% annually.
- 58% of homes sold achieved a selling price equal to or in excess of their Home Report valuation, up from 35% last year.
- The strengthening in market activity has seen more sellers to market their homes at Offers Over, with roughly two thirds of homes brought to the market advertised in this manner.
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Latest figures released today by ESPC show that activity in the East Central Scotland housing market remained brisk during the second quarter of the year. The number of homes sold across Edinburgh, the Lothians and Fife between April and June was 32% higher than during the same period last year. Activity amongst sellers also increased, with the number of homes coming onto the market rising by 10% on an annual basis.
The sharpest increase in sales has been seen in the market for smaller properties. Over the last three months the number of one bedroom homes has jumped by more than 50% annually, with rising activity among first time buyers and buy to let investors spurring growth in this area. Sales of larger properties also showed substantial improvement. There was a 29% rise in the number of three bedroom homes changing hands whilst sales of properties with four or more bedrooms were 34% higher than at this time last year.
The rise in buyer activity has made market conditions more favourable for sellers and this is reflected in the selling prices properties are achieving relative to their Home Report valuation. In the three months to June 58% of homes sold across Edinburgh, the Lothians and Fife achieved a selling price that was equal to or inexcess of their original Home Report valuation. That marked an increase from 35% of those sold during the same period last year.
In most areas of East Central Scotland house prices are higher than was the case at this stage last year. In Edinburgh an annual increase of 3.9% brought the average house price in the area to £223,924. Although sharper increases were observed in some areas, these generally offset decreases during the same period last year. For example the 9.4% rise in East Lothian came on the back of a 13.4% decline during the same period last year meaning that prices in the area are still below 2012 levels.
Commenting on the results David Marshall, Business Development Manager with ESPC said:
"The improvement in market activity in 2013 has continued into 2014 with a notable rise in the number of homes being bought and sold. Conditions are more favourable for sellers, with more homes achieving Home Report valuation and selling times shortening. We’ve also seen a continued rise in the popularity of the Offers Over approach to selling a home, with roughly two-thirds of homes coming onto the market being advertised in this way.
"Whilst the market has improved it’s worth putting the growth we’ve seen in perspective. The number of sales we’re seeing is still around 25% lower than at the peak of the market and the rate of house price inflation in most areas in moderate, especially when compared to the rapid rises being observed in some areas south of the border."
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