ESPC House Price Report May 2018
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- The average selling price in east central Scotland between March and May 2018 has increased by 8.2% to £239,378 when compared with the same period last year
- The number of homes sold in east central Scotland between March and May of 2018 decreased by 11.5% annually
- The number of new homes brought to market between the months of March and May decreased by 6.0% annually
- 89.8% of properties listed between March and May 2018 were marketed as 'offers over', compared with 82.5% in 2017
- The median selling time in east central Scotland is 19 days which is one day slower than this time last year
- The percentage of sales achieving or exceeding their Home Report valuation rose from 74.4% between March and May 2017 to 78.7% in 2018.
Spring sees higher selling prices and less properties coming to market
Selling prices for residential property across east central Scotland rose by 8.2% on average over the past three months of March, April and May compared with the same months of spring last year, according to the latest house price report by ESPC, the leading property experts in east central Scotland.
Average selling prices across Edinburgh rose by 9.0% in this period, with properties in areas of high demand seeing even larger increases: two-bedroom flats in the coastal suburbs of Portobello and Joppa sold for £256,794 on average, 26.1% higher than the same time last year. In areas around the Union Canal, selling prices for one-bedroom flats in Polwarth, Shandon and Tollcross rose by 16.9% to an average of £204,874.
While buyers of one-bedroom flats around Leith Walk, Easter Road and Bonnington paid 16.4% more than those who purchased this type of property last year, they were still able to secure their property for under £200,000 at an average selling price of £156,849. Half of these one-bedroom flats were under offer within thirteen days of being listed.
Sellers of two-bedroom flats in Newington, Grange and Blackford on average accepted offers that were 11.2% over Home Report valuation, with the average across Edinburgh being 6.7%, and across east central Scotland properties sold for 4.6% over their Home Report valuation. This is one of the indicators of a seller's market, and shows a strong demand for property.
Last month, ESPC reported that the median time to sell had been the same as last year, and that there were less properties going under offer within fourteen days. This month, the data shows that the time to sell was one day slower this spring compared with last year, and the percentage of properties put under offer within fourteen days dropped from 44.8% last year to 41.2% this year. The median time to sell across east central Scotland was nineteen days, and sixteen days in Edinburgh.
The number of residential homes coming to market continues to decrease year-on-year, with 6.0% less listed this spring compared with last year across east central Scotland. This places strong demand on these properties as buyers compete to secure their place or continue their journey on the property ladder.
ESPC's Business Analyst Maria Botha-Lopez says: "Strong demand continues for residential property across east central Scotland and Edinburgh, with average selling prices continuing to rise year-on-year. Concerns of affordability are raised when data is showing that the average selling price for a two-bedroom flat in the New Town was over £400,000 this past spring. However, our most viewed property on espc.com in the past three months is a perfect example of how buyers are looking outside the typical hotspots for their next home: a three-bedroom semi-detached house in Bonnyrigg marketed at a fixed-price under £200,000 took top spot.
"Just over a third of properties listed through ESPC member firms are being marketed with an asking price of less than £175,000 which is zero tax threshold for first time buyers introduced by the Scottish Government in its 2018-19 draft budget. While there is strong demand for property from many different sectors, there is support and stock for first time buyers looking to purchase their first home."
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