ESPC House Price Report - April 2011
Overview
- The average house price in Edinburgh stood at £206,902 in the three months to April - 4.6% lower than during the same period a year ago.
- The number of homes for sale is roughly 30% higher than would normally be seen at this time of year, meaning buyers remain in a strong negotiating position in the market.
- 33% of homes sold at Fixed Price in Edinburgh achieved the asking price, down from 42% last year.
- In West Lothian prices rose by 5.6% annually to £160,880.
- The average house price in Dunfermline rose by 5.2% annually to £138,613. This reversed the fall of 4.9% recorded last year.
- The expectation is still for average house prices to show annual falls of between 3 and 5% in coming months before levelling off towards the end of 2011.
Edinburgh
The average price of a home sold between February and April in Edinburgh was £206,902, down 4.6% from £216,804 during the same period last year.
The average price of a property in the City Centre stood at £225,741 following a year-on-year decline of 10.4%, however this followed a rise of 12.4% the previous year meaning prices were still above 2009 levels. Similarly, a 7.4% drop in fall in the average price of a two-bed flat in Marchmont and Bruntsfield followed a 19.5% rise in 2010.
David Marshall explained: "Several areas saw sharp rises during the first half of 2010 and in most cases these are now being offset, at least in part, by falls this year. It's not unusual to see this sort of volatility in averages within specific areas, particularly when the number of homes selling is comparatively low as is the case just now.
With that said, conditions just now do favour of buyers. There are more properties for sale than you would typically see at this time of year and the number of active buyers is still lower than normal. If you look at properties sold at Fixed Price, 33% are achieving the asking price this year compared to 42% at this stage last year. Buyers are definitely having more success at securing lower prices."
One exception to the trend in the Capital was seen in Leith Walk and Easter Road where the average price of a one-bedroom flat rose by 10% annually to £125,214, however David Marshall cautioned: "The figures here reflect a small number of sales of particularly attractive properties in the area this year for around £150,000. Most one-bedroom flats in the area are still selling for around £110,000 and we'd expect the average to return to that sort of level in months ahead."
The Lothians
The average price of a property in East Lothian showed little change over the last twelve months, falling just 0.8% from £193,655 between February and April 2010 to £192,061 during the same three month period this year. In Midlothian annual fall of 5.1% was observed, although this only partially offset a rise of 13.2% during the same period last year.
David Marshall explained: "Unsurprisingly, the property market in the Lothians has followed similar trends to those seen in Edinburgh. Prices are generally slightly below 2010 levels, but still up on where they were in 2009. West Lothian has bucked the trend somewhat with a 2.8% rise last year followed by a further 5.6% increase this year, however it is unlikely that this growth will be maintained in coming months."
Dunfermline
The average house price in Dunfermline during the three months from February to April stood at £138,613 following a year-on-year increase of 5.2%. The rise came on the back of a 4.9% decline at this stage last year, with the new average just £6 higher than that recorded in 2009.
David Marshall commented: "Prices in Dunfermline have rebounded somewhat at the start of 2011 but if you look over a two year period the average house price is almost identical to that seen in 2009. Although the growth may hearten sellers somewhat, it's still a buyer's market out there. Competition among sellers is high and is likely to remain so throughout 2011."
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