ESPC House Price Report April 2016
Between February and April 2016:
- The number of homes sold in east central Scotland increased by 1.1% annually when compared with the same period last year
- The average selling price across east central Scotland decreased by 5.7% when compared with the same period last year
- The percentage of sales achieving or exceeding their Home Report valuation rose from 50.7% between February and April 2015 to 62.4% in 2016
- The median selling time in east central Scotland is 54.2% faster when compared to the same three-month period a year ago – from 62 days down to 29 days.
‘Offers over’ properties at an all time high
The percentage of properties marketed as ‘offers over’ has reached an all-time peak of 83.8% in east central Scotland, according to the latest analysis from ESPC.
This is greater than the number of ‘offers over’ in both the first quarter of 2004 and the first quarter of 2007, periods when we were seeing the property market at its most buoyant – they had 76.5% and 72.9% of properties marketed as offers over, respectively. By comparison, in the third quarter of 2009, only 13.4% of properties for sale were marketed as ‘offers over’.
Properties are also selling faster than before. The median time to sell in east central Scotland is 29 days, 54.2% faster when compared to the same period a year ago, and in Edinburgh the median time to sell is 22 days.
What this means is that the property market is in favour of the seller, who can expect their properties to be sold for an average of 7.2% over the asking price, up from 5.8% last year.
Buyers are in competition for the most desirable properties and are having to act quickly if they wish to snap up a property. As we have seen over the last months, the numbers of properties available for sale can’t keep up with the demand. However, the number of new homes brought to market between the months of February and April increased by 2.5% annually. We are starting to see positive yet modest signs of growth with this increase in the number of new properties coming to market.
The faster selling times could also be attributed to the rush for buy-to-lets ahead of the 3% tax supplement on second homes, as those wishing to purchase a buy-to-let property are likely to have the means to buy quickly. This is also evident with one and two bedroom flats in Leith selling the fastest and in the greatest numbers within this three month period.
Maria Botha Lopez said: “One of the reasons we are seeing this high number of properties marketed as offers over is that sellers and their solicitors have greater confidence in the market, and know that they can achieve a selling price over the Home Report valuation.
“While the average selling price of properties in east central Scotland has decreased by 5.7% over the last three months, average selling prices in the first quarter of 2015 were driven up by larger than normal volumes of high-end properties selling before the April 1st implementation of LBTT. We expect to see a continued levelling out or a return to growth over the next few months, and more specifically in the second quarter of the year.
“Over the next few months, and more specifically in the second quarter of the year, we might start seeing signs of any potential impact the second homes supplemental tax has had on the property market.”
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