Conditions in the property market across Edinburgh and the Lothians continue to strongly favour sellers, with prices rising and selling time quickening. A combination of high buyer demand, coupled with a relatively low supply of properties coming onto the market has meant that the strong sellers market witnessed throughout 2016 has strengthened further.
In the three months to April, the number of sales recorded by Warners was 12% higher than during the same period a year ago. The average selling price of properties going under offer also rose, with a 5.5% annual increase bringing the average price of a property sold between February and April to £212,598.
At the same time, selling times have quickened from the already rapid levels seen in 2016. Between February and April of 2017 the median selling time for a property sold by Warners was just 15 days. During the same period in 2016, that figure stood at 19 days.
In many cases, sellers are seeing their properties attract significant interest during their first week on the market allowing them to set a quick closing date and achieve a strong offer for their property. 80.8% of homes sold by Warners over the last three months achieved a selling price that was higher than the property’s Home Report valuation. That’s up from 65.5% during the same period last year, and from 53.5% in 2015.
Commenting on the figures David Marshall, Operations Director with Warners said: “Although we have seen an improvement in the number of homes coming onto the market so far in 2017, at this stage it has not been sufficient to match the level of buyer demand that we are experiencing in Edinburgh and the Lothains. There are always exceptions in any market, but the vast majority of sellers are seeing their properties sell quickly and achieve prices that are often well in excess of the valuation figure. In fact, over a third of sales over the last three months have been agreed for 10% or more above the valuation figure.
“For those who are looking to sell this is obviously excellent news. The market is stronger for sellers than it has been for almost a decade, with low interest rates, rising market confidence and a comparatively strong economy all contributing to high buyer demand.
“For buyers however, the current market is much more challenging. Invariably people are facing high levels of competition from other buyers and will find that they are unsuccessful with offers on a number of properties before they are able to secure a new home. As we have noted before, this problem is particularly acute for first-time buyers as banks are usually only willing to lend up he the valuation figure in the Home Report.
“There is some good news for buyers however. The number of homes that we are bringing to the market is up by around 17% annually. It is important that we continue to see this trend in the months ahead as it will help to balance out the excess of demand over supply which has been prevalent over the last two years.”
If you are thinking of buying or selling a home in Edinburgh, the Lothians or Fife, feel free to contact us on 0131 667 0232 or by emailing firstname.lastname@example.org and one of our team will be delighted to help.