ESPC House Price Report April 2017
- The average selling price in east central Scotland between February and April of this year has increased by 3.3% when compared with the same period last year.
- The number of new homes brought to market decreased by 11.4% annually during this three month period.
- The number of homes sold in east central Scotland decreased by 9.1% annually.
- The median selling time in east central Scotland is 24.6% faster when compared to the same three-month period a year ago – from 29 days down to 22 days. For properties across Edinburgh, the median time to sell was 17 days.
- Properties sold between February and April of 2017 that had been marketed as ‘offers over’ achieved an average of 8.9% over the asking price, up from 7.3% last year.
Faster selling times and increased prices create a strong market for sellers
The property market in east central Scotland has experienced an 11.4% decrease in the number of homes available for sale between February to April 2017, according to the latest analysis from ESPC, the leading property experts in the region.
This spring, we have seen a reduction in properties available for sale than in previous years. A shortage of properties, combined with a continued demand from buyers, is resulting in those properties available selling very quickly and achieving a higher selling price, particularly in central Edinburgh and other desirable areas.
85.6% of properties listed between February and April 2017 were marketed as ‘offers over’, compared with 77.8% in 2016, which indicates just how confident solicitor estate agents, and their clients, are in achieving over the Home Report value. We are seeing evidence of properties going for well above the Home Report valuation in Edinburgh. Statistical data shows that almost a quarter of sales (24.2%) in Edinburgh go for more than 10% above Home Report valuation.
While the number of homes sold in east central Scotland between February and April of 2017 decreased by 9.1% annually, this is not due to a lack of demand from buyers, but can be attributed to the shortage of properties coming to market.
The types of property showing the largest year-on-year increases in average selling prices between February and April of 2017 are two bedroom flats in the Bellevue, Hillside and Broughton ((23.2% increase), three bedroom houses in South Queensferry and Dalmeny (16.3%) and one bedroom flats in the Leith Walk area (11.8%). Overall, average selling prices in Edinburgh city centre have increased by 9.2%.
ESPC’s business analyst Maria Botha-Lopez said: “We are continuing to experience a seller’s market which is largely due to the number of properties that are coming to market. This drives up selling prices as buyer demand continues to be strong. Many potential sellers won’t market their property until they find a suitable property to buy, and the higher rate of Land and Building Transaction Tax is also having an impact on those who want to move up the property ladder, according to our solicitors.
“ESPC member firms are reporting an increase in buyer enquiries in the first quarter of the year. However buyers are finding it difficult to secure a property due to the availability and affordability as a result of being outbid, particularly at the lower, first time buyer end of the market. Central Edinburgh is proving to be particularly competitive, as buyer demand is outstripping stock availability. It is clearly a good time for sellers to bring their property to market as they are likely to achieve over the asking price and to sell quickly.”
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