Edinburgh & Lothians Property Market Report: October 2019
Despite ongoing uncertainty about Brexit latest figures from Warners, one of Edinburgh’s largest solicitor estate agents, have revealed that the number of property sales being agreed in Scotland’s capital is at its highest level since 2008. Improving stock levels, low interest rates, high activity among investors and first-time buyers, and comparatively low unemployment have all combined to help bolster the property market across Edinburgh and the Lothians.
During the third quarter of the year Warners helped to sell almost 300 properties across Edinburgh and the Lothians. That marked an increase of over 38% compared to the same three month period in 2018.
In spite of the huge increase in the number of homes being bought and sold, pressure on buyers has actually eased over the last two years. Evidence of this can be seen in the average premiums that are being paid over and above Home Report valuation to secure a property. During the third quarter of 2019, the average premium paid over the valuation figure stood at 3.2%. That marks a decrease from 5.3% during the third quarter of 2018, and from 6.0% between July and September of 2017.
Similarly, the average time taken to sell a property has increased, again reflecting the fact that the pressure on buyers is less intense than it has been over the last two years. The median time that a property spent on the market during the third quarter this year was 22 days. That marks a slight increase from the time of 19 days during the same period last year, and from 17 days in Q3 2017.
The reason that conditions have become somewhat more favourable for buyers has been that the supply of homes coming onto the market has improved over the last two years. During the first nine months of 2017, Warners listed just over 650 properties for sale in Edinburgh. During the same period in 2018 this figure rose by 5% to almost 700. In 2019 the number of properties brought to the market rose by a further 22% to almost 850.
Commenting on the figures David Marshall, Operations Director with Warners said: “During the second half of 2016 and into early 2017, the market was crying out for an improvement in the supply of properties for sale in Edinburgh and the Lothians. It is to the benefit of the market as a whole that we have seen this improvement happen over the last two years.
“As we now have a better balance between demand from buyers and the supply of homes to the market the pressure has eased on homebuyers. That is especially good news for first time buyers who were regularly finding themselves being outbid at closing dates or having to pay a substantial amount over valuation in order to secure a home.
“To date there remain few signs that the market has been adversely affected by the ongoing manoeuvrings with Brexit. Even looking at figures for the first half of October, the number of sales being agreed is well ahead of the levels that we have seen in recent years. A disorderly exit from the EU continues to pose the most substantial downside risk to the market as we head towards 2020, but at this stage activity remains very buoyant.”
If you are thinking about buying or selling or if you have a question about the property market, contact Warners today on 0131 667 0232 and one of our friendly experts will be delighted to help.