As we come towards the end of 2018, activity levels in the east central Scotland property market have shown improvement. The last two months have seen both the number of homes coming onto the market and the number of sales agreed in Edinburgh and the Lothians rise well above levels seen in recent years.
During October and November this year Warners recorded 143 property sales. That marks an increase of 22% compared to the same two months period in 2017. The number of homes coming onto the market has risen even more quickly during this time. Warners listed 137 homes for sale in Edinburgh and the Lothians between October and November, up 37% on 2017 levels and more than 50% higher than in 2016.
Crucially, the supply of properties to the market has started to rise more quickly than demand from buyers. As a result, the balance of power in the market has started to shift away from sellers meaning that buyers are now starting to enjoy a little more success in negotiations.
This is reflected in the average premiums that properties are now achieving relative to their Home Report valuation. In the three months to November the average premium paid over valuation to secure a property was 4.4%, down from 5.6% a year ago.
The impact for buyers is significant. 12 months ago, if a buyer wanted to secure a property valued at £200,000 they could expect to pay an average of £11,200 over the valuation. Today, that figure has come down by £2,400 to £8,800.
David Marshall, Operations Director with Warners commented: “From the end of 2016 through to the first half of 2018, the property market in Edinburgh and the Lothians was typified by a shortage of properties for sale. This meant that there were generally multiple buyers competing for each property, putting sellers in a very strong position to secure a high offer for their home.
"Since July though, we have finally started to see an improvement in the number of homes coming onto the market. More homes for sale in Edinburgh and the Lothians means greater choice for buyers and fewer people competing for each home. As a result, the pressure on buyers has started to ease and the large premiums that were almost commonplace earlier in the year are far less frequently seen.
"Market activity is still brisk given the time of year however, and in most cases properties are still selling well. As we move into 2019, uncertainty around Brexit continues to present the biggest downside risk to the market but house prices will continue to be supported by strong employment and low interest rates. At this stage the expectation is that house prices in Edinburgh and the Lothians will rise by 1-2% over the course of the year."
If you are thinking of moving home or if you have a question about buying or selling, get in touch today on 0131 667 0232 or by emailing email@example.com and Warners will be delighted to help.