Edinburgh & Lothians Property Market Report: March 2019
The Edinburgh property market continued its record-breaking start to the year in February as activity amongst both buyers and sellers continued to soar. During the month, Warners Solicitors & Estate Agents recorded a 27% rise in the number of properties coming onto the market as sellers showed few signs of being deterred by the prospect of ‘Brexit’.
The rise in the number of homes coming onto the market early in 2019 continues the trend seen during the second half of 2018. Warners recorded an annual increase of more than 20% in the number of homes coming onto the market in six of the last eight months. In two of those months the rate of growth exceeded 60% annually.
Commenting on the results David Marshall, Operations Director with Warners Solicitors & Estate Agents said: "Since the middle of 2018 we have seen a large increase in the number of homes coming onto the market. This came on the back of two years when the number of properties being listed for sale was severely constrained, so the improvement in supply over the last eight months is welcome news.
"Throughout 2016 and 2017 potential sellers consistently cited a lack of properties for sale as the main factor stopping them putting their own home onto the market. As sellers started to take the plunge in the middle of 2018, this led to an increase in the number of properties for sale in Edinburgh. Sellers who had been sitting out waiting for more homes to become available were then tempted to list their own home, further improving supply.
"As a result, the number of homes for sale in Edinburgh today is now around 25% higher than it was a year ago."
There has also been a substantial increase in the number of sales being agreed early in 2019. In the three months to January, Warners recorded an annual increase of 50% in the number of properties going under offer as buyers came out in force early in the year.
David Marshall continued: "Most of us buy and sell a home at the same time, so it is only natural to expect that the rise in listings that we have seen recently would lead to an improvement in the number purchases as well. In general, it is a good market for sellers and most properties are still selling quickly. The rise in the number of homes for sale means that there are now fewer buyers competing for each property though, meaning that competition amongst buyers is not as high as it was 12 months ago.
"This is most clearly seen in the premiums that properties are achieving relative to their Home Report valuation. A year ago, properties in Edinburgh were achieving selling prices that were, on average, 7% over the Home Report valuation. This year, with more homes for sale, the pressure on buyers has eased and the average premiums being paid are closer to 4%.
"The prospect of Brexit looms on the horizon of course and this presents the biggest downside risk to the market in 2019. To date there are no indications that this is deterring homemovers and that aside, with buyer activity high and the number of homes for sale having improved, conditions are arguably healthier in the local market than they have been for a number of years."
If you are thinking of buying or selling a home or if you have a question about the property market, get in touch with Warners today on 0131 667 0232 or by email at firstname.lastname@example.org and one of our expert team will be delighted to help.