07 Oct Scottish Property Market Update
It continues to be a seller’s market in East Central Scotland, making now a great time to sell. Read on for the latest news in our Scottish Property Market Update.
Between July and September in East Central Scotland, the average selling price increased by 4.7% compared to the same period of the previous year.
Between July and September this year, the number of homes sold in East Central Scotland increased by 10.7% compared with the same period of 2015. However, the number of new homes brought to market reduced by 9.4% year on year between the months of July and September.
The number of properties brought to market between July and September 2016 saw 83.8% marketed as ‘offers over’. This is a significant increase in the volume of offers over in 2015 over the same period – 69.4%
Looking at asking prices between July and September this year, there was an increase of 8.9% where sales achieved or exceeded their Home Report valuation (60.9% recorded July – Sept 2015 vs 68.0% July – Sept 2016). In Edinburgh alone, 74.5% of sales met or exceeded their Home Report Valuation in this current reporting period.
South Queensferry Sees House Prices Rise as the New Crossing Nears Completion
Over the past three months, properties in South Queensferry have seen one of the largest increases in average house prices as the new bridge crossing nears completion, according to the latest analysis by ESPC.
Selling prices for three bedroom houses in South Queensferry and Dalmeny increased by 15.4% between July and September 2016, while two and four bedroom houses have also shown a rise in selling prices. The new crossing to South Queensferry is said to be open for use by May 2017, and we are already seeing indications that the area is increasing in popularity ahead of the opening. The new crossing offers greater transport links and an easier commute.
Edinburgh and Surrounding Areas
Looking closer to home, areas in and around Edinburgh including Currie and Juniper Green, saw the price of three bedroom properties rise by 21.4% annually. Both these areas are popular for its quiet, village like feel and its close-knit community spirit.
The average house price in the New Town and West End of Edinburgh for two bedroom flats increased by 13.6% over the past three months. One bedroom flats in the Leith area remain popular for students and with new businesses, student accommodation and a new Starbucks Franchise opening on Leith walk. These seem to be ‘best sellers’ as they have sold in the greatest volume and have seen a 10.5% increase in average house prices.
Post EU Referendum
It is now three months since the outcome of the EU referendum was announced and it is encouraging that average selling prices across East Central Scotland are continuing to rise annually, despite speculation that buyer demand in the property market would be curtailed.
While we continue to see an increase in prices, there also continues to be a drop annually in the number sales and new listings. This reflects that there is still an ongoing shortage of properties on the market, rather than a decrease in buyer demand, and indicates we are still in this seller’s market.
Organisations such as Homes for Scotland, The Scottish Property Federation and the Royal Institute of Chartered Surveyors, refer to additional pressures on the housing market caused by the higher Land and Buildings Transaction Tax (LBTT) rates on properties over £325,000, as well as the 3% second homes tax. Home movers, sellers and buyers are facing these new tax pressures and might be delaying or even reconsidering their options when it comes to moving home. If you are swithering about whether to put your own property on the market, think again! With decreasing property sale times and increasing property prices mean that there has not been a better time to get your property on the market for several years. With interest rates at a historic, new low of 0.25% and mortgage products readily available, and with more buyers than sellers in the marketplace, demand is high and sale times are quick.
If you have any questions about selling your property, or need a Home Report carried out, drop us a line on 0131 608 0175 or email us at email@example.com