Warners Monthly Housing Market Report - April 2018
Latest figures from the first quarter of 2018 reveal that the property market in Scotland’s capital continued to strongly favour sellers. The majority of properties for sale in Edinburgh during the first three months of the year have sold quickly and achieved offers in excess of their Home Report valuation.
During the first three months of the year 84% of properties sold by Warners achieved a price in excess of the Home Report valuation. That marked an increase from 80% during the same period a year ago and from 55% in 2016.
The size of premiums that properties are achieving has also risen. Between January and March this year properties sold by Warners achieved an average of 7.0% above Home Report valuation, compared to 6.6% in 2017 and 2.3% in 2016. This means that for a home valued at £250,000 buyers would have had to pay an average of £17,500 over the valuation figure to secure the property during the first three months of 2018.
David Marshall, Operations Director with Warners commented: "Market conditions favoured sellers during 2017 and this has continued into early 2018. The main driver of the seller’s market is simply a lack of properties available for sale. The number of homes on the market just now is less than a half of what you would typically expect at this time of year. As a result there is an excess of demand over supply meaning that there are more people competing for each home that is on the market, resulting in prices being pushed upwards. Added to this, the economy has been relatively robust and interest rates remain very low by historical standards.
"For those who are simply looking to sell this is all great news of course. They can reasonably expect that their property will sell quickly and achieve a good price. If you are also looking to buy a new home in or around Edinburgh the news is more mixed. On the selling side of things conditions will be very much in your favour but, when it comes time to buy, the chances are that you will face substantial competition and you may find that you miss out on some properties that you offer on before being able to secure your new home.
"As we look forward in 2018 there are potential headwinds facing the market which should lead to the market cooling down somewhat in the months ahead. In many areas of the UK, and in particular further south, the market has already begun to cool. It is reasonable to think that this will have a knock-on effect for the rest of the country in due course. Additionally, the ongoing Brexit negotiations may well create uncertainty in the market during the second half of the year. During times of uncertainty people typically look to delay major decisions such as moving home, so this could serve to dampen demand.
"Overall, the picture remains a positive one for property sellers however and the likelihood is that the balance of power will continue to lie in their favour throughout the remainder of the year."
If you are thinking of buiying or selling a property in Edinburgh, the Lothians or Fife, get in touch today on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our team will be delighted to help.