Mortgage costs trigger sales surge, more demand for s…
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The well-heeled Edinburgh suburb of Fairmilehead was the most expensive neighbourhood to buy a home, with properties here selling for an average of £471,549. Conversely, the cheapest location was the charming Borders town of Galashiels, where a home could be snapped up for £134,223 on average.
Two-bedroom flats in Leith, The Shore and Granton were especially sought-after, with prices rising 9.8% annually to £248,337. Alongside this, three-bedroom houses in popular, family-friendly suburbs also experienced significant increases in selling prices: in Liberton and Gilmerton, the average selling price for a three-bedroom house leapt 24% to £325,984.
The most affordable property type on the market was two-bedroom flats in Dunfermline, with an average selling price of £114,037. Interestingly, the city of Dunfermline experienced a sharp rise in prices over this period; the average selling price overall was £200,455, which is 6.6% higher than the same time last year.
Overall, all the reported areas experienced a decline in the amount over the Home Report valuation buyers were willing to offer.
Buyers paid the highest premium to live in Edinburgh, with the average successful bid sitting at 102% of the valuation figure, which is 0.8% less than the same time last year.
However, there was huge variation in the trends within the Capital: in the City Centre, properties attained 99.9% of the Home Report valuation on average (1.7 percentage points down on last year), while in the West of the city, buyers bid 108.1% of the valuation on average, which is 5.7 percentage points higher year-on-year. Perhaps with Edinburgh West offering cheaper average selling prices overall, buyers had to offer higher bids in order to secure properties.
Buyers could pick up a bargain in West Lothian, with homes attaining 99.8% of their valuation figure on average, 1.5 percentage points less than last year.
These figures are reflected in the overall data, which shows that 69.1% of homes for sale during February – April 2024 sold for at least their Home Report valuation, which is down from 77% in February – April 2023.
There was a significant uplift in the volume of properties coming on to the market during February – April, with insertions increasing by 19.4% year-on-year.
Dunfermline had the highest volume of new property listings, with volumes 15.8% higher year-on-year. Leith was in second place, where sales volumes rose by 37.1% annually, and Corstorphine had the third-highest levels of insertions, up 25.2% on February – April 2023.
Some 84.6% of properties that came onto the market were listed for ‘offers over’, which is up 5.3% on the same time last year and indicates high confidence from sellers, even in a saturated market.
Paul Hilton, chief economist of ESPC, comments: “The data for the period of February-April is consistent with what we’ve been seeing over the past few months, and it hints that this will continue well into the summer. Overall, we’re seeing a huge influx of properties coming onto the market (up 37% in April alone versus last year), perhaps as a result of fixed mortgage terms coming to an end and homeowners deciding to move on to a new home, rather than absorb a higher cost in their existing property.
“This is teamed with lower numbers of buyers in the market, meaning that for the buyers that are ready and able, they can enjoy a huge variety of options to choose from that the market hasn’t offered in a long time. While this means slower selling times and lower bids, with less of a need to pay a premium to secure a home, sellers appear to remain confident in the market and are continuing to list their homes in high numbers, as well as choosing to list their homes using the ‘offers over’ marketing method. Of course, sellers themselves can also benefit from the abundance of properties to choose from if they are also making an onward purchase.
“It’s not the easiest market for sellers, which is why it’s more important than ever to consult your local solicitor estate agent for up-to-date advice on the latest market trends and the best way to market your property, including setting it at the correct price to attract the most attention in a crowded marketplace.
“If you’re thinking of buying or selling a home in Edinburgh, the Lothians, Fife or the Borders, contact your local ESPC solicitor estate agent today.”
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