ESPC House Price Report June 2017

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Key points

• The average selling price in east central Scotland between April and June of this year has increased by 5.2% when compared with the same period last year
• The number of new homes brought to market between the months of April and June decreased by 5.8% annually
• The number of homes sold in east central Scotland between April and June of 2017 decreased by 1.7% annually
• For properties across Edinburgh, the median time to sell was 14 days for properties sold in between April and June
• 86.6% of properties listed between April and June 2017 were marketed as ‘offers over’, compared with 77.9% in 2016
• Properties sold between April and June of 2017 that had been marketed as Offers Over achieved an average of 9.7% over the asking price, up from 7.8% last year.

The Gorgie and Dalry area is catching up with Leith as the most popular place for first time buyers to purchase a flat, according to the latest house price data from ESPC, the leading property experts in east central Scotland.

The number of one bedroom flats sold in Gorgie and Dalry over the last three months has increased by 25.9% compared with the same three month period last year, while the number of one bedroom flats sold in Leith has decreased by 4.5% year on year. The reason for this switch in popularity could be attributed to Gorgie and Dalry being one of the most affordable areas in the city where there is a ready supply of flats. In Leith, the average selling price of a one bedroom flat has increased by 7.6%, with an average selling price of £137,958, while in Gorgie and Dalry the average selling price is £129,585 - an increase of 14.2%.

The median time-to-sell across east central Scotland is down to 16 days between April and June 2017, which is 19.8 % faster than the same period a year ago. In Edinburgh, this time to sell is down to 14 days, which is the fastest time to sell we have seen in many years.

This quick selling time can be attributed to an extended shortage of homes being brought to market, with a 5.8% decrease in the number of new property listings over the last three months. The average selling price in Edinburgh has increased by 6.4% over the last three months to £249,788, attributed to the shortage of properties driving up demand, as 87.8% of properties in the city sell for on or over their home report valuation.

This theme is also evident in relation to two bedroom flats in Morningside and Merchiston which are showing the largest year-on-year increases in average selling prices, sell within a medium time of 15 days and for 9.9% above Home Report valuation.

ESPC business analyst Maria Botha Lopez said: “The new normal seems to be a market without an abundance of new listings replenishing the available supply. This tips the market in favour of sellers, who are likely to see a lot of interest in their property if it is located in a sought-after area, and meets the needs of the buyers on the market. A short time to sell, and selling prices over Home Report valuation are the norm within Edinburgh, with calmer conditions in the outlying areas of Fife and the Lothians.

“Being a seller’s market, this means that those looking to buy a property will often need additional savings or cash flow to purchase a property that’s going for over the home report valuation, but looking out of Edinburgh or purchasing a new build property could be an alternative.”

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