Edinburgh & Lothians Property Market Report: July 2019
With the first half of 2019 now behind us, the property market in Edinburgh and the Lothians has continued to show remarkable strength. Latest figures from Warners Solicitors show that activity amongst buyers and sellers in the first six months has risen substantially compared to 2018. Indeed, the number of homes being bought and sold is at its highest level since the market downturn in 2008.
Between January and June this year, Warners brought over 550 homes for sale to the market. This marked an increase of over 23% compared to the same period in 2018 reflecting the fact that more sellers, their confidence bolstered by the strength of the market over the last two years, are now showing a willingness to put their own home up for sale.
The number of offers being agreed for properties has also risen sharply. During the first half of the year Warners also helped to sell over 500 homes. This represents an increase of 26.5% compared to the first half of 2018, though it should be noted that the annual rate of growth during the second quarter was more modest at 16.1%.
David Marshall, Operations Director with Warners, commented: "In many ways it has been a remarkable first half of the year for the local housing market. Going into 2019 there was a feeling in many quarters that activity would be subdued as homemovers awaited the outcome of Brexit. This has not been the case. In fact the number of homes changing hands during the first six months of the year at its highest level in over a decade.
"With more homes coming up for sale, there is now a better balance between supply and demand than has been the case in recent years. As a result, buyers are now having to pay lower premiums to secure properties than was the case a year or two ago. During the first half of 2018, for example, the average premium paid to secure a home stood at 6.6%. This year, that figure has come down to 3.9%.”
2019 has also seen an increase in the number of homemovers who are aiming to secure their purchase before putting their own home onto the market.
David Marshall explained: "Within Edinburgh in particular, we are seeing more and more buyers submitting offers that are subject to the sale of their existing property. This marks a significant change from what was common practise for much of the last decade. In the past, when the property market was more subdued, homemovers were primarily concerned with securing the sale of their own property before worrying about their onward purchase.
"More recently, the market has improved and homemovers have gained more confidence in the likelihood of being able to secure a quick sale for their home. This has led to more people submitting offers ‘subject to sale’ then looking to get their home onto the market and under offer quickly once they have sold.
"Naturally, an offer that is made ‘subject to sale’ is not as attractive to a seller as a clean offer but it is increasingly common in the current market. This is especially true in the market for family homes where typically people will have to sell their current home in order to fund their onward purchase.
"At present there are few signs of the market slowing down and we continue to expect that activity will remain brisk over the remainder of 2019. The number of homes being bought and sold is likely to remain ahead of levels seen in recent years, whilst house prices will inch upwards at a rate that is broadly in line with inflation."
If you are thinking of selling your home, or if you have a question about the property market, get in touch with us today on 0131 667 0232 or by emailing email@example.com and one of our team will be happy to help.