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Continued increase in properties coming to market while flat prices in New Town and West End soar

Posted: 6th February 2019

Key points

  • From November 2018 to January 2019, the average selling price in east central Scotland rose to £239,709, a 3.6% increase compared to the same period last year
  • During this three month period, the sales volume increased by 11.9% year-on year
  • Between November 2018 and January 2019, the number of homes brought to market increased by 21.6% compared to the same period last year
  • The average percentage of Home Report valuation achieved during this three month period was 102.7% compared to 103.5% last year, which was a 0.8% decrease
  • The median time to sell from November 2018 to January 2019 was 23 days, which was three days slower than the same period last year
  • 23.4% of sales went to a closing date compared to 28% of sales last year.

Find out the full area breakdown for house prices in east central Scotland and the Scottish Borders from November 2018 to January 2019 in the ESPC house price table.

Increase in property listings and sales volume

November 2018 to January 2019 saw a 21.6% increase year-on-year in the number of homes coming to market – this is slightly less pronounced than the annual increase in the fourth quarter of 2018 of 23.9%, but still indicates seller confidence in the current market conditions. The increase in the number of homes coming to market in recent months has had a positive effect on sales volume, which has increased by 11.9% year-on-year.

Average selling price across east central Scotland

From November 2018 to January 2019, the average selling price in east central Scotland rose to £239,709, which was a 3.6% increase compared to the same period last year. This is a less pronounced increase than we have seen in previous months – in ESPC’s December and November House Price Reports, the annual increase in average selling prices in east central Scotland was 4.4% and 5.3% respectively.

Selling times, Home Report valuation achieved and closing dates

Homes in east central Scotland are continuing to achieve relatively short selling times. Between November 2018 and January 2019, the median selling time in east central Scotland was 23 days – however, this was three days slower than the same three months last year.

In east central Scotland, between November 2018 and January 2019, the average percentage of Home Report valuation achieved was 102.7%, which was a 0.8% decrease on the same period last year. During this three month period, 23.4% of sales went to a closing date compared to 28% of sales last year.

The slightly longer selling times, marginal decrease in percentage of Home Report valuation achieved and decrease in number of sales going to a closing date could suggest positive news for buyers, as they now have a greater volume of homes to choose from. However, the fact that these changes are relatively small, coupled with continued year-on-year increases in average selling prices, also shows that buyer demand remains relatively strong.

Average selling prices in different areas

Within Edinburgh, between November 2018 and January 2019, the average selling price rose by 5.1% to £262,911 compared to £250,103 last year. Two bedroom flats in New Town and the West End rose to £432,990, which was a 21.7% increase compared to the same period last year. The average selling prices of three bedroom houses in Corstorphine, Clermiston, South Gyle and East Craigs rose by 15.7% to £339,228, and in South Queensferry and Dalmeny, the average selling price of three bedroom houses rose by 15.5% to £206,267.

However, from November 2018 to January 2019 three bedroom houses in Liberton and Gilmerton saw a 17.3% decrease in average selling prices compared to last year, dropping to £222,545.

During this three month period, properties in East Lothian saw average selling prices rise to £235,108, which was a 12.2% increase compared to last year. The average selling price of properties in West Fife and Kinross also rose by 9.8% to £179,960.

Outwith east central Scotland, the Scottish Borders saw a very small annual decrease in average selling prices during this three month period, dropping by 3.3% to £212,914.

Fastest seller, highest Home Report valuation achieved and top sales volume

Two bedroom flats in Portobello and Joppa were the fastest selling property type, with a median selling time of 14 days, which was one days slower than the same period last year. One bedroom flats in Abbeyhill and Meadowbank achieved the highest percentage of Home Report valuation on average at 109.5%.

Between November 2018 and January 2019, the top selling property type in east central Scotland was two bedroom flats in Leith, followed by one bedroom flats in Leith.

Strong demand for flats in the New Town and the West End

Jamie Fraser-Davidson, Business Analyst at ESPC, said: “From November 2018 to January 2019, there was a continued increase in the number of homes coming to market compared to last year. This is good news for buyers as they have a greater volume of homes to choose from.

“Average selling prices are still increasing in comparison to last year, which, coupled with the significant annual increase in sales volume, shows that buyer demand is still relatively strong at present.

“Two bedroom flats in the New Town and the West End saw a significant 21.7% increase in average selling prices compared to last year. With stunning Victorian and Georgian buildings and the amenities of the city centre a stone’s throw away, it’s unsurprising that there is strong demand from flats in this area, as it’s likely to attract both buy-to-let investors and those who simply want to live in the city centre.”

 

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