Property sellers in Edinburgh and the Lothians continued to find conditions in the local housing market to be very much in their favour as winter drew to a close. Almost nine out of ten homes sold by Warners Solicitors & Estate Agents in the three months to February achieved a price in excess of their Home Report valuation as demand for properties remained high.
Latest figures show that between December and February, 87% of homes sold by Warners achieved a selling price that was higher than the Home Report valuation. That marks an increase from 70% during the same period a year ago and from 43% in 2015/16.
Rising Premiums Cause Challenges for Buyers
Over the last three months, buyers have paid an average premium of 6.7% over the Home Report valuation figure in order to secure a property. Three out of ten homes sold achievied a price that was 10% or more above the valuation figure.
David Marshall, Operations Director with Warners explained: “The property market in Edinburgh and the Lothians remains challenging for buyers, and in particular those who are looking to get onto the property ladder.
“Take the example of a first-time buyer looking to buy a one-bedroom flat in Edinburgh valued at £130,000. As properties are achieving an average premium of 6.7% above their valuation, on average, we can expect this flat to sell for £8,710 more than its valuation.
“The first-time buyer in this example would need to have that £8,710 available up front in addition to their deposit if they want to secure the property. For many that presents a hurdle that is difficult to overcome without turning to the ‘Bank of Mum and Dad’ for assistance.”
With buyer demand high, it's not surprising that most properties are not spending long on the market. The median selling time for a property for sale in Edinburgh and the Lothians over the last three months is just 15 days, up slightly from 14 days last year but way below the figure of 28 days two years ago.
More Properties Now Coming Onto the Market
Buyers who are looking for a ray of hope will be somewhat buoyed to know that the number of homes coming onto the market is continuing to show signs of improvement. New listings through Warners have risen by just under 10% on an annual basis as the strong market conditions have been tempted more sellers to get their home onto the market.
“At this stage we continue to expect their to be greater balance between supply and demand as we move forward in 2018 and this will help to moderate some of the high premiums we are currently seeing in the months ahead.”
If you are thinking of selling or buying a property and you need help or advice, feel free to contact us today on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our staff will be delighted to help.