Edinburgh & Lothians Property Market Report: May 2019
Latest figures released by Warners Solicitors and Estate Agents show that property market activity in Edinburgh and the Lothians continued its remarkable pace during April. In the three months from February to April, Warners recorded a 24.2% annual increase in the number of properties sold.
There was an almost identical rise in the number of homes coming onto the market. In the three months to April Warners brought over 270 homes for sale to the market, an increase of 24.1% compared to the same period in 2018.
David Marshall, Operations Director with Warners, commented: “There has been no shortage of activity in the Edinburgh property market so far in 2019. Although there was an expected dip in sales and listings over the Easter holidays, we are now seeing activity at its highest level since 2008.
"Overall the market has benefited greatly from the rise in number of homes coming onto the market over last few months. Throughout 2017 and during the first half of 2018 there was a real shortage of properties available for sale in Edinburgh and the Lothians. This put a huge amount of pressure on buyers as there were typically multiple people competing for each property that was available.
"Since the midway point of 2018 supply has improved and there are now more homes for sale in Edinburgh and the Lothians than has been the case for some time. This has helped ease the pressure on buyers somewhat and, whilst most homes are still achieving prices in excess of their valuation, the average premiums that buyers are now having to pay are lower than they were a year ago.”
In the three months to April, properties sold across Edinburgh and the Lothians achieved an average of 3.8% over and above their Home Report valuation. Although high by historical standards, this was some way below the average premium of 6.6% over Home Report valuation recorded between February and April last year.
The majority of properties are still selling quickly. During the last three months the median selling time recorded by Warners was 19 days, slightly longer than the figure of 15 days recorded a year ago but again, well ahead of historical norms.
Summarising the results, David Marshall said: “For those who are only looking to sell, the market is a little less favourable than was the case a year ago simply because there is more competition from other sellers. In most areas though, properties are still selling quickly and achieving good offers.
"Additionally, most of us tend to sell and buy at the same time. Even if you don’t achieve quite as much for the property that you are selling, when it comes time to buy you will probably face less pressure from other buyers and may be able to secure your new home for less than you had originally thought.
"The improvement in the number of homes for sale in Edinburgh and the Lothians is certainly good news when thinking about the long-term health of the market as it will help to ensure that house price inflation does not persist at levels that are unsustainable levels in the long term. At this stage we still expect house prices to rise by between 1 and 2% annually in the local market over the course of 2019."
If you are thinking of buying or selling a property and you have a question about the property market, get in touch with Warners today on 0131 667 0232 or by emailin firstname.lastname@example.org and one of our team will be delighted to help.