Edinburgh & Lothians Property Market Report: September 2019
The number of property sales being agreed in Edinburgh and the Lothians continued to soar throughout the summer. In the three months from June to August, Warners Solicitors & Estate Agents helped to sell 250 properties. That represents an increase of over 20% compared to the same period in 2018.
It was also the highest figure recorded by the firm for those three months in over a decade as the high activity levels that have typified the market in 2019 showed few signs of tapering off.
Despite the high number of sales being agreed, there have been further signs that market conditions are not as favourable for sellers as they were a year ago. The median selling time for a property in Edinburgh and the Lothians between June and August stood at 21 days. Although quick by historical standards, this nonetheless marked an increase from 16 days last year.
Indications that the pressure on buyers has eased can also be seen in the premiums over Home Report valuation that properties are achieving. In the three months to August this year, the average premium paid over to secure a property was 3.8%. During the same period last year this figure was 5.8%.
Commenting on the results, David Marshall, Operations Director with Warners said: "The number of homes changing hands in Edinburgh and the Lothians this year is higher than it has been at any stage over the last decade. It’s important to note however that this is due in large part to an increase in the supply of properties coming onto the market.
"As a result, there are more homes for sale in Edinburgh than was the case in 2017 and 2018. This in turn has meant that there is more choice for buyers, which puts them in a stronger position during negotiations that was the case in each of the last two years.
"Although most properties are still selling quickly and achieving prices in excess of their valuation, selling times are a little higher and premiums a little lower than they were 12 months ago.
"At this stage, the market for smaller properties is most buoyant. One and two-bedroom flats are typically selling well, especially in areas like Leith and Dalry. These properties are attracting demand from both first-time buyers and buy-to-let investors meaning that such homes are typically not spending long on the market.
"Family homes are typically taking a little longer to sell at this stage, albeit they are still selling comparatively quickly relative to historic norms. There are some properties that are spending longer on the market than would have been the case a year or two ago as improvement in the supply of family homes for sale has afforded buyers greater choice. In the market for family homes it is also increasingly common to see offers being made ‘subject to sale’, with buyers looking to secure their onward purchase before getting their own home onto the market.
"As we move forward, the looming prospect of Brexit presents the biggest downside risk to the market and it is possible that we may see some short-term disruption to activity levels as we get nearer to the end of October. To date, however, there is little evidence of buyers and sellers in Edinburgh and the Lothians changing their behaviour."
If you are thinking about buying or selling a property or if you have a question about the market, get in touch today on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our friendly, expert team will be delighted to help.