Edinburgh’s housing market is following a similar trend to London and the rest of the UK, nudging towards stability; local estate agency Warners flags that the Scottish capital is “showing initial signs of a return to equilibrium”.
The firm reports a 20% growth in the number of properties it has brought to the market in the first quarter of 2017 compared with the same period in 2016 – as well as a 20% year-on-year increase for March.
Almost 80% of the properties sold in Q1 achieved a selling price that exceeded Warner’s Home Report valuation – up from 56% during the same period last year. Less than 10%, meanwhile, went for a price below their Home Report valuation, well below last year’s 34% figure.
Knight Frank’s noticed a similar blossoming in the prime Scottish countryside recently, reporting that “there is a feeling of cautious optimism among buyers so far this year”.
David Marshall, Operations Director at Warners Solicitors & Estate Agents: “It is no secret that the Edinburgh property market favoured sellers in the past year, with demand outstripping supply and strong house price growth throughout the market.
“These high prices haven’t led to a rise in the number of homes coming onto the market however. In fact many potential sellers over the last year have delayed putting their home onto the market until they find somewhere that they wish to buy, further fuelling the supply shortfall, leading to quicker sales and an upwards pressure being exerted on house prices.
More people in Edinburgh appear ready to take the plunge and put their property onto the market
“We are now seeing tentative signs that this phenomenon is beginning to relax as more people in the city appear ready to take the plunge and put their property onto the market.
“Although people often think of rising prices as being a good thing, the reality is that it very much depends on your situation. Downsizers in particular are likely to have benefited from market conditions over the last year, as have investors. On the other hand, conditions are naturally tough for first-time buyers who will frequently find themselves being outbid at closing dates.
“Whilst the market still remains tilted in favour of sellers, a continuing improvement in supply would help the market to balance itself out, and in the long run could ease some of the pressure on buyers.”