ESPC House Price Report - May 2013

  • The average house price in Edinburgh between March and May stood at £206,858 – down 5.3% annually.
  • Prices also declined in most other areas of East Central Scotland, although a modest year-on-year increase of 2.5% was recorded in Dunfermline.
  • The number of homes sold in the three months to May rose by 5.1% annually.
  • The number of properties coming onto the market has also increased, with new instructions up by 5.4% annually in the three months to May.
  • The percentage of sales between March and May where the Home Report valuation was achieved rose from 27.1% in 2012 to 30.0% in 2013.
  • In Edinburgh, properties achieved an average selling price equal to 96.5% of their valuation – up from 96.0% twelve months ago.

The average price of a property sold in Edinburgh between March and May stood at £206,858. This represents an annual decrease of 5.3% from the level of £218,369 during the same period in 2012.

Across the Lothians, average house prices were also lower than those recorded a year ago. In East Lothian a 5.6% decrease took the average house price to £196,312 whilst in Midlothian a 7.0% fall brought the average house price to £168,256. In West Lothian a more modest year-on-year decline of 1.4% brought the average house price in the area to £148,915.

Although the average house price fell in most areas, there was a notable increase in buyer activity. The total number of sales recorded between March and May rose by 5.1% annually and to the highest level for that period since 2008. Activity from sellers also improved, with the number of properties coming onto the market rising by 5.4% annually in the period from March to May.

David Marshall, business analyst with ESPC explained: "We started to see an improvement in the number of homes selling early in 2012 and this trend has continued in recent months. There has been a rise in activity from first time buyers and buy-to-let investors in particular which has helped stimulate demand for smaller properties and this obviously has a knock on effect further up the property ladder.

"It’s important to put this rise in activity in perspective of course and it should be noted that in most cases the balance of power continues to favour those who are in a position to buy. Although the percentage of sales where the Home Report valuation is achieved has risen slightly – from 27.1% a year ago to 30.0% today – in the majority of cases buyers are still having success in negotiating discounts with sellers."

 

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