EDINBURGH’S housing market continues to buck the trends experienced elsewhere across the UK as new figures show that nearly 80 per cent of properties sold for more than their Home Report valuation in the last three months.
The latest statistics from Warners Solicitors and Estate Agents revealed that during the period from May to July the average property price was £213,784 – 6.6 per cent higher than the same period last year (£200,471).
This compares to figures from Halifax earlier this month which showed that UK-wide growth slowed considerably to just 2.1 per cent in the same period.
It said that house prices had remained “broadly flat”, but they were 0.2 per cent lower than in the previous three months – the fourth successive quarterly fall and the first time it had happened since November 2012.
David Marshall, operations director at Warners, said the market was one for sellers.
“With demand in the market still strong and supply limited, it is probably not surprising that most metrics show that the market is favouring sellers and prices are continuing to surge,” he said.
“During the three months from May to July, almost 80 per cent of properties sold through Warners achieved a price that was in excess of their Home Report valuation.”
He added: “A year ago that figure stood at a comparatively modest 60 per cent.”
Less than 14 per cent of properties sold for less than their Home Report valuation during the same period – that is a drop of almost 25 per cent compared to the same quarter of last year which, according to Warners, indicated that there was some strength throughout the housing market.
The average premium that properties are selling for over and above their Home Report valuation, stands at 6.5 per cent.
Based on the mean valuation for properties sold in the last three months this means that buyers are willing to pay an average premium of more than £13,200 above valuation to be sure of securing the property they want.
Despite these figures, Warners said there is still evidence of changing conditions in the market that could swing the scales in favour of buyers in the coming months.
An increase in the length of time properties spend on the market combined with other factors could make it easier for first time buyers to take their initial step on the coveted property ladder.
Marshall added: “The average time taken for a property to sell has increased from 15 days earlier in the year to 20 days more recently, and whilst this is still very quick by historic standards, it does reflect the fact that the market has eased somewhat as the year has progressed. In large part this has been because we have started to see more properties coming onto the market in 2017.
“During the seven months of the year Warners has brought over 500 properties for sale to the market, a rise of 20 per cent over levels seen in 2016.”
An increase in the number of homes coming onto the market indicates there is a greater balance between supply and demand, which should help to ease competition between buyers for properties and which could stop property prices being driven up dramatically.
Warners operates three property centres in Edinburgh and is one of the capital’s leading estate agents for property transactions.
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