Edinburgh & the Lothians Property Market Report: February 2020
Warners Monthly House Price Report: February 2020
Conditions in the housing market in Edinburgh and the Lothians have remained robust during the early part of 2020. During the three months to end January almost 80% of homes sold across Edinburgh and the Lothians achieved an offer equal to or in excess of their Home Report valuation while the average selling time across the region was only three weeks.
Over the last two years there has been a consistent improvement in the number of homes coming onto the market. Last year Warners listed over 1,000 homes for sale in Edinburgh and the Lothians – an increase of more than 20% compared to 2018. With supply having improved, annual house price inflation has eased back from 9.4 % in early 2018 to just 1.1% today.
Commenting on the results David Marshall, Operations Director with Warners said: “In the majority of cases properties that are coming onto the market are selling quickly and achieving good prices. House price inflation has come down substantially over the last two years as there are now more properties for sale meaning that there are typically fewer buyers competing for each property.
“Given that most of us buy and sell within a relatively short timeframe it is no bad thing that inflation has eased here. Ultimately all of us need somewhere to live and if the value of the property that you are selling rises, the price that you will have to pay for your next property is also likely to have risen. Were inflation to have persisted at an unsustainably high level for a prolonged period of time that would have not been good for the long-term health of the market so it is positive to see that prices are rising at a more modest level.”
Deeper examination of the figures shows that it is smaller, flatted properties that are attracting the most demand. During the three-month period from November to January, one-bedroom flats sold in Edinburgh and the Lothians achieved an average of 4.1% above their Home Report valuation. Almost a third of one-bedroom flats sold during this period managed to go to a closing date.
David Marshall commented: “If sellers are able to generate enough interest to set an early closing date then that is when you can hope to achieve higher amounts over valuation. Because a closing date is essentially a blind auction, interested parties will have to submit their best offer if they wish to secure the property.
“One-bedroom flats will generally attract interest from both first-time buyers and buy-to-let investors meaning that they generally appeal to a bigger target market than larger properties and this has helped them to command higher premiums than larger properties.
“Looking ahead to the rest of 2020 we expect to selling times remaining brisk while house price inflation continue at a modest level of 1-2%. Macroeconomic conditions are still strong and mortgage availability is good meaning that, it is reasonable to expect another buoyant year in the local market.”
If you are interested in buying or selling a property or if you have a question about the market, get in touch with Warners today on 0131 667 0232 or by emailing email@example.com.