ESPC House Price Report June 2023
Property market data: Key points
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The average property selling price across Edinburgh, the Lothians, Fife and the Borders rose 0.2% to £280,286 during April-June 2023.
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Properties took an extra seven days to sell, with a median selling time of 20 days.
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The volume of properties sold during this time declined 12.9% year-on-year.
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The number of properties coming onto the market during April-June decreased 3.3%.
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Buyers paid 103.3% of Home Report valuation on average, down 4.9 percentage points.
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79.3% of homes sold achieved their Home Report valuation or higher.
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27.6% of properties for sale went to a closing date.
Selling prices rose slightly overall, but market continued to show signs of cooling
During the period of April-June 2023, average property selling prices across Edinburgh, the Lothians, Fife and the Borders showed a marginal increase of 0.2% year-on-year, taking the new average to £280,286. In the current financial climate, this slight increase shows that there are still healthy numbers of buyers in the property market, but that they perhaps are becoming more cautious with securing a home for a price closer to its Home Report valuation, in contrast to the high overbids seen in recent years. The figures show that 79.3% of homes that sold during April-June 2023 achieved their Home Report valuation or higher, down 13 percentage points year-on-year, which highlights how much more cautious buyers are with the prices they are willing to pay.
Properties in the City of Edinburgh had the highest average selling price overall of £299,164, however this figure is down 0.9% year-on-year, hinting that demand in the Edinburgh property market is continuing to settle following a frenzied few years post-pandemic.
East Lothian homes experienced the biggest increase in average selling prices, rising 5.7% to £296,869. Within East Lothian, the popular coastal town of Musselburgh saw the largest jump in prices, with a 10.2% increase taking selling prices to £252,353 on average.
Two-bedroom flats in Dunfermline were the most affordable property type, with an average selling price of £132,192, making this an ideal option for first-time buyers and property investors.
A reduction in closing dates and lower bids showed the market is settling
The market continued to show signs of rebalancing during April-June 2023, due to changes within the wider economic markets and following the intense period of property market activity since Summer 2020.
Buyers paid an average of 103.3% of Home Report valuation for their chosen properties, which is down from 108.3% in April-June 2022, showing how the acute demand for property is continuing to settle to ‘normal’ levels, and again hinting that buyers are seriously considering affordability when making offers on properties.
During this period, fewer homes went to a closing date, showing that sellers were perhaps happier to accept good offers from buyers in order to move on to their own property searches, rather than hold out for a closing date and delay their own moving process. 27.6% of homes for sale went to closing during April-June 2023, down from 37.9% the previous year.
Sales volumes and new property listings decreased overall
The volume of properties selling during April-June 2023 decreased 12.9% year-on-year, while the number of new properties coming to the market declined 3.3%, once again hinting that the market is more cautious in the current climate.
Leith saw the highest volume of properties selling, with figures 9.4% higher than April-June 2022; perhaps this could be attributed to the appeal the area currently has with the launch of the extended tram line, giving Leith better and faster transport links across the city, making it more appealing to commuters. Two-bedroom flats here sold in the highest volumes overall, followed by one-bedroom flats, suggesting that Leith is still a very popular area for first-time buyers.
Musselburgh saw sales volumes increase 13.8% annually; combined with the substantial increase in average selling price, this demonstrates that Musselburgh continues to be a very popular choice for buyers looking to find a home with proximity to the Capital, the coast and the countryside.
Newington also experienced a boost in sales of two-bedroom flats, with sales volumes for this property type up 40.9% year-on-year. Given that this area is adjacent to the city’s universities, this boost in the local market could be explained by a return to normal levels of interest in the student market, with more students returning to in-person learning and seeking accommodation close to campus.
Post-pandemic, Dunfermline experienced an intense period of popularity, thanks to its lower-than-average selling prices and good commuter links to the Capital. However, this ‘boom’ has been slowing in recent months; during April-June 2023, sales volumes in Dunfermline declined 31%, while the number of new properties coming to the market here were the highest overall, up 2% on the previous year, showing that sellers were more active than buyers in this particular location.
Sales times slowed as market became more cautious
In the period of April-June 2023, median property selling times across Edinburgh, the Lothians, Fife and the Borders increased seven days, to 20 days. With the current financial climate meaning it may take longer for prospective buyers to arrange mortgages or check their financial statuses, perhaps this can be attributed to the slowing down of the market in this sense, as well as more choice of homes on the market for buyers, meaning they can take a slightly more relaxed approach to selecting their next home.
West Lothian saw the biggest increase in median selling times, with properties going under offer in 37 days – 10 days longer than in April-June 2022.
Edinburgh homes took six days longer overall, with a median selling time of 20 days. Within Edinburgh, homes in the North-Westerly pockets sold in the slowest time frame of 27 days, while homes in the South-West of the city went under offer the fastest, in a median time of 15 days.
Two-bedroom flats in Dunfermline, the most affordable property type on the market during this period, sold the fastest overall, with a median selling time of seven days – six days faster than the same time last year. This shows that value for money is very important for buyers on a budget, who remain willing and able to act quickly to secure a property that meets their criteria.
What does it all mean for the property market?
Paul Hilton, CEO, ESPC, commented: “In a typically busier time for the property market, the most recent figures show clear signs that the post-pandemic property boom is slowing, and adjustments are being made for increasing costs and other economic changes.
“With smaller increases in average property selling prices, slower selling times and a decrease in the amount that buyers are willing to pay over Home Report valuation, we can see that the current financial climate is making an impact on the property market. Buyers and sellers alike are more cautious, and buyers are bidding more carefully to ensure long-term affordability for their chosen properties.
“However, there is still plenty to be positive about in the market. Areas offering excellent commuter links to the Capital, such as Musselburgh, and areas with more affordable properties, such as Leith and Dunfermline, continue to prove popular with quick selling times and good volumes of sales overall, and average selling prices continue to perform well generally, with increases in many areas.
“It’s an interesting time for the property market, and so it’s more important than ever that buyers and sellers alike work with local property experts, like ESPC solicitor estate agents, to secure up-to-date insights and advice across the local market to help them at this all-important stage of their lives.”
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