Podcast: Local property market update for Q3 2024

In this episode, Paul and Megan are joined by David Marshall from Warners, Caitlin Keegan from Gillespie Macandrew and Tracy French from ELP Arbuthnott McClanachan to discuss the Scottish property market during Q3 (July - September 2024). Along with giving their opinions on market activity and sales growth, the panel talk about property chains, first-time buyer success stories, quarter share properties and much more.

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Key Insights

Market Activity and Sales Growth

Q3 saw strong sales activity, with properties generally selling within 3-4 weeks. Listings increased by 13.5%, and sales surged by 19.3%, with the average sale price rising by 4.9%, reaching £290,259. The average premium over home report valuations was around 3%, lower than the overheated market premiums seen in 2020-2021. Though time to sell was about 22 days, the overall time to complete transactions increased from 8 to 10-12 weeks due to longer mortgage approvals and property chains.

Property Chains

There was a noticeable rise in "subject to sale" offers, leading to longer chains, which slowed down the process and made it harder for buyers in a chain to secure properties. Buyers not in a property chain or those already on the market had a competitive advantage, with sellers increasingly preferring chain-free offers, and sometimes accepting lower offers for the certainty.

Stock Increase and Buyer Concerns

There was a 20-22% increase in available properties, providing more choices for buyers. However, many potential sellers hesitated to list their homes due to fears of being unable to secure a new property or rent one during the transition.

First-time Buyers' Success

Thanks to reduced interest rates and more mortgage product options, such as joint buyer mortgages, many first-time buyers successfully entered the market during Q3.

Less Investor Competition

There has been a noticeable decrease in property investors, allowing first-time buyers more opportunities to purchase homes, which has boosted their confidence in the market.

Market Strategy - "Offers Over" Dominance

Around 84.5% of properties are listed with "offers over" pricing strategies, reflecting a more stable and competitive market compared to last year. Current conditions are fairer for buyers, especially first-timers.

Hotspots for First-time Buyers

Leith, South Edinburgh, and Gorgie/Dalry were identified as property hotspots, especially for first-time buyers due to affordability and proximity to city amenities and transport links.

Quarter Share Properties

These properties have been noted to attract high competition, sometimes exceeding expected valuations, offering a viable option for buyers who might otherwise struggle to enter the market.

Christmas and New Year Market Trends

The discussion pointed out the importance of timing property listings, with the post-Christmas period (Boxing Day onwards) being a prime time for buyers to begin searching for homes again. The panel expects a busy end to 2024, fueled by interest rate cuts and strong market demand. A quieter December is anticipated before a brisk market revival in early 2025.

 

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