Significant increase in number of homes coming to Edinburgh and east-central market positive news for buyers

In Edinburgh specifically, there was a 5.6 per cent increase compared to last year. This is a positive sign for buyers as a shortage of properties has been limiting the market in recent years. This increase also indicates sellers’ confidence in the market.

Between August and October 2018, the average selling price across east central Scotland rose to £246,927 compared to £232,814, which was a 6.1% increase. In Edinburgh, the average selling price was £267,451, which was a 6.8 per cent increase compared to the same period last year.

Within the capital, three bedroom houses in Blackhall, Davidson Mains, Silverknowes, Cramond, Barnton and Cammo saw the biggest year on year increase in average selling prices during this period, rising by 19.4 per cent to £407,537.

Two bedroom flats in Bellevue, Hillside and Broughton saw the next biggest increase, with average selling prices rising by 13.9 per cent to £286,979, followed by two bedroom flats in Leith, The Shore and Granton, which rose by 11.8 per cent to £200,925.

Three bedroom houses in Currie, Balerno and Juniper Green saw an 8.5 per cent decrease in average selling prices compared to last year, dropping to £288,948. However, on average three bedroom houses are still achieving 103.6 per cent of their Home Report valuation in these districts.

Properties in Dunfermline also saw a significant increase in average selling prices, rising by 18.3 per cent to £176,505. This is mainly due to a decreased proportion of smaller flats sold along with a greater proportion of larger homes sold in the area.

The median selling time of properties in east central Scotland over the past three months was 20 days, which is one day slower than last year. Within Edinburgh, the median selling time was 19 days, which is one day slower than last year.

Two bedroom flats in New Town and West End, one bedroom flats in Dalry, Gorgie, Slateford and Chesser, two bedroom flats in Portobello and Joppa and one bedroom flats in Abbeyhill and Meadowbank offered the shortest selling times; over the past three months, each had a median selling time of 14 days. The short selling times of one bedroom flats in Dalry and the surrounding areas, as well as Meadowbank and Abbeyhill suggest continued strong demand from first time buyers and buy-to-let investors, as these are typical hotspots for those looking to get on the property ladder and renters.

Two bedroom flats in Leith was the property type that sold the most between August and October, followed by three bedroom houses in Dunfermline and one bedroom flats in Leith.

The number of homes sold during this period decreased by 0.4 per cent annually. This decrease is less pronounced than in previous months, which is likely a result of an increasing number of homes coming to market over the summer and early autumn months.

ESPC’s Business Analyst Jamie Fraser-Davidson said: “It is encouraging to see a 10.9 per cent increase in the number of properties coming to market over the last three months. This is a positive sign for buyers and indicates sellers’ confidence in the current market conditions, likely due to the continued trends of increasing average selling prices, short selling times and properties exceeding their Home Report valuation.

“As we get further into the winter months and closer to Brexit, it will be interesting to monitor the impact on both sellers’ confidence and demand from buyers.

“It seems the strong demand for homes in the city from first time buyers and buy-to-let investors continues. One bedroom flats in areas popular for first time buyers and renters such as Dalry, Abbeyhill and Leith Walk have seen notable year on year increases in average selling prices. Plus, one bedroom flats in these areas are, on average, achieving above Home Report valuation and we are generally still seeing short selling times for these properties.”