Edinburgh & Lothians House Price Report: March 2023
It seems a little hard to believe but the first quarter of 2023 is already in the rear-view mirror, and it’s been a brisk start to the year for the property market across Edinburgh and the Lothians. At Warners we recorded over 100 sales during the month of March alone, with these properties spending an average of just 18 days on the market before going under offer.
In most cases sellers are still enjoying success in negotiations. 87% of properties sold during March this year achieved a price that was equal to or in excess of the Home Report valuation, with buyers paying an average of 4.3% over the valuation to secure a property over the course of the month. It should be noted, however, that still represents a decrease from the figures observed at this stage last year. In March last year 99% of properties sold achieved an offer equal to or above valuation, with buyers having to pay an average of 10.5% over valuation in order to secure a home.
Latest figures from ESPC paint a similar picture. In general, the properties that are coming onto the market are still selling well, but activity is some way down from the unprecedented levels seen in 2021 and 2022. The number of homes going under offer during the first quarter of 2023 was down 13.1% from the high levels seen during the first three months of last year. Meanwhile the average selling price of a property in the capital rose by a modest 0.9% annually from £283,417 during the first three months of 2022, to £286,108 during the same period this year.
Commenting on the results David Marshall, Operations Director with Warners Solicitors & Estate Agents, said: “After the property market reopened following lockdown in June 2020, we saw more than two years during which the imbalance between supply and demand was unprecedented. There simply were not enough homes coming onto the market to keep pace with the demand for buyers. As a result there were typically multiple buyers competing for each property for sale, meaning that to secure a home typically meant having to pay well in excess of Home Report valuation.
“Since the middle of last year though, we have seen things start to settle down a little and the figures that we are seeing now are more reflective of market activity levels pre-COVID. Although most properties are still achieving offers in excess of Home Report valuation, the premiums that buyers are having to pay over valuation are less than half of what we saw at the peak of the market.
“One of the issues that the market faces when premiums are high is that lenders are only willing to lend up to the valuation of the property meaning that if you want to offer more than that figure, you will need to have that cash available up front in addition to your deposit. First-time buyers are often limited in terms of the cash that they have on hand, so the fact that premiums are starting to come down will be great news for those looking to get onto the property ladder.”
If you are thinking of buying or selling a property in Edinburgh, the Lothians and Fife, or if you have a question about the local housing market, get in touch with Warners today on 0131 662 4747, or by email at property@warnersllp.com
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- Guide to buying your first home in Scotland
- Properties of the Month: April 2023
