ESPC House Price Report December 2017
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Key points
- The average selling price in east central Scotland between October and December 2017 increased by 7.3% to £234,757 when compared with the same period last year, and in Edinburgh the average selling price is now £253,598 – up 9.5% year-on-year
- The number of homes sold in east central Scotland in this three month period decreased by 2.5% annually
- The number of new homes brought to market between October and December 2017 increased by 3.1% annually
- The median selling time when compared to the same three-month period a year ago is down from 25 days to 20 days. For properties across Edinburgh, the median time to sell was down to 18 days
- 89% of properties listed between October and December 2017 were marketed as ‘offers over’, compared with 79.5% in 2016
- Properties sold marketed as ‘offers over’ achieved an average of 9.3% over the asking price.
Edinburgh property market continues to buck the UK trend
The average selling price of properties in Edinburgh increased by 9.5% in the last three months of 2017, when compared with the same period last year, according to the latest house price report from ESPC.
Across east central Scotland the average selling price increased by 7.3% year-on-year to £234,757 between October and December 2017, bucking the overall UK trend of decreasing property prices, as has been reported by various commentators. This increase in selling prices could be attributed to a 2.5% decrease in the number of homes sold over the last three months, and a 3.1% decrease in the number of homes being marketed for sale.
With a shortage of properties available, particularly in desirable hot-spots, multiple buyers are in competition with one another, thus driving up the prices. This is similarly reflected in the fact that 89% of properties in east central Scotland are now marketed as ‘offers over’, the highest percentage we have seen in a number of years, and those properties are achieving on average 9.3% over the asking price, up from 7.1% last year.
Some of the most desirable areas and types of property in Edinburgh that have shown the large increases over the last year include two bedroom flats in Morningside and Merchiston, up 17.3% year-on-year, and two bedroom flats in Trinity, up 25.6% year-on-year.
While the time to sell is currently down to 18 days in Edinburgh, the types of property selling the quickest, at 14 days, are one bedroom flats in Gorgie and Dalry, and two bedroom flats in Portobello and Joppa.
ESPC’s business analyst, Maria Botha-Lopez said: “Throughout 2017 we have seen faster selling times, an increase in the percentage of properties being marketed as ‘offers over’ and an increase in average selling prices, particularly for two bedroom flats in the most desirable areas of Edinburgh. This is indicative of the trend we have seen for some time, of a shortage of properties and increased demand, which drive up the average selling prices.
“While Edinburgh city centre flats are proving popular, three bedroom houses in popular family areas like Blackhall, Silverknowes and Balerno and Currie have stabilised over the last three months, with slight decreases compared with the sharp increases in selling price earlier in the year. Similarly, properties in Dunfermline have decreased by 1.7% over the last three months, and with an average selling price of £160,022, they are significantly more affordable than properties in Edinburgh or East Lothian.”
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