Note: This article was originally published in August 2016. You can read the most recent update on how much properties are selling for relative to Home Report valuation here
There is no doubt that the Edinburgh property market is buoyant and two new reports have further driven home this perception.
Detailed analyses from both Registers of Scotland (RoS) and ESPC revealed that, across Scotland, house prices are continuing to rise, with RoS reporting that the average price of a property in June 2016 was £143,282 - up 4.6 per cent on the previous year.
The biggest price increase over the last year – according to RoS - was in Edinburgh where the average price increased by 11.7 per cent to £240,978. The biggest decrease was in the City of Aberdeen, where prices fell by 6.8 per cent to £178,069.
Furthermore, it was reported that the percentage of sales achieving or exceeding their Home Report valuation rose from 61.4% between May and July 2015 to the current level of 70.8% in 2016.
The ESPC House Price Report for July 2016 also underlined that homes on the market are being snapped up quickly. Indeed, the median selling time in east central Scotland is now 40% faster than in the same three-month period a year ago – from 34 days down to 21 days.
These latest figures are very much in line with what we have seen ourselves at Warners Solicitors & Estate Agents. Properties coming onto the market are selling very quickly. In most cases, they are spending less than three weeks on the market, and there are even some areas where the average selling time is less than two weeks.
Although there are always exceptions in any market, most properties in popular areas are attracting interest from multiple buyers. This allows sellers to set closing dates where buyers are motivated to submit their best offer if they want to secure the home and, as a result, a significant majority of homes are achieving a price that is equal to or above the Home Report valuation.
It may seem somewhat counter-intuitive given how strong the market is for sellers, but at present there is actually a shortage of properties coming on. Indeed, the ESPC report found that the number of properties being sold across east central Scotland has decreased by 8.4%, with the analysis revealing that this decline has continued since the EU Referendum, along with the number of new properties being put on the market.
Increasingly, we are hearing sellers saying that they want to hold off putting their own home onto the market until they actually find somewhere they wish to buy, and this only serves to exacerbate the surplus of demand of supply.
We know that the current shortage of housing results in a rising demand for property and therefore exerts an upwards pressure on house prices, but what does this mean for Scottish homebuyers and sellers?
For those looking to sell, all of this is good news as the balance of power in the market is clearly lying firmly with sellers at the moment, as further evidenced by the RoS and ESPC reports. Demand has outstripped supply in the market for some time now and that is likely to remain the case, meaning that sellers will continue to find conditions favourable in the months ahead.
For those looking to purchase a property, the current market can make the buying process a little more complex. Having fewer properties on offer often results in stiff competition – particularly in central areas like Edinburgh where demand is continuously growing - and may mean buyers are unsuccessful with offers on a number of homes before securing success.
Fortunately for those looking to take a leap onto the property ladder, Warners Solicitors & Estate Agents is always on hand to provide expert advice and it is always important to get the best available guidance.
Whatever happens on your journey, remember that you’re not alone. A good, experienced solicitor estate agent will have come across almost every curveball that the market can throw out.
If you are thinking of buying or selling a property, feel free to get in touch today on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our friendly team will be delighted to help.