As we reach the midway point of 2018, the property market in Edinburgh is showing few signs of slowing down. Between March and May, properties for sale in the Capital have typically been selling quickly and achieving offers in excess of Home Report valuation.
Across Edinburgh the average selling time for a property has been a little over two weeks, while properties are achieving an average of more than 6% over their Home Report valuation.
The primary factor driving the market has been a shortage of properties coming onto the market. As a result the properties that are coming onto the market are typically attracting interest from multiple buyers allowing most sellers to set closing dates for their properties. Once a closing date has been set buyers are motivated to submit their best offer allowing sellers to achieve prices which can often be well in excess of the initial valuation figure.
The most commonly cited reason for sellers delaying putting their property onto the market has been a lack of suitable properties to buy, creating something of a vicious circle. This has ultimately led to a situation where the number of homes for sale in Edinburgh is around 50% lower than would normally be expected at this time of year, meaning that there is a real shortage of supply relative to demand.
Commenting on the results David Marshall, Operations Director with Warners said: “For some time now there simply have not been enough homes for sale in many areas of Edinburgh to keep pace with demand. This is great news if you are looking to sell a property of course, but for buyers the market is incredibly challenging.
“Of course most of us look to buy and sell at the same time meaning that these figures represent mixed news for the majority of people. On the sales side you may well receive a higher offer than you expected for your current property but, when it comes time to buy, the chances are that you will probably have to bid more than you anticipated to secure your next home.
“At present the market is toughest for those looking to secure their first property. Most lenders are only willing to lend up to the Home Report valuation of a figure. If you want to offer any more than the valuation figure you will need to have this money available in addition to your deposit. Most first-time buyers don’t have the cash available to allow them to do this, making it very hard for people to get on the property ladder.
“As we come into the summer months, the market is likely to quieten a little, but the reality is that the market is less seasonal than was once the case. There will be a slight drop in the number of properties selling, but equally the number of homes coming onto the market will be lower than we saw during the spring period. As a result, the balance between supply and demand will be broadly unchanged meaning that sellers will continue to hold sway in the market.”
If you're thinking of buying or selling a property, or if you have a question about the property market, contact Warners today on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our team will be delighted to help.