February Property Market Update 2024

Property Market Highlights

  • Scottish Property Sales Volumes Rose by 2.8% Year-on-Year
  • Buyers Enjoyed More Choice as New Property Listings Increased 13.6% Annually
  • Properties Attained 101.5% of Their Home Report Valuation at Sale
  • Average Property Selling Price Across Key Scottish Markets Fell 4.4% to £271,106
  • Increased Number of Buyers Purchasing Homes ‘Subject to Sale’ of Own Property

Scottish Property Sales Volumes Rose by 2.8% Year-on-Year

Despite November to January typically being a quieter period for the residential property market, property sales volumes across East Central Scotland saw a gentle but encouraging uptick of 2.8% year-on-year, according to the latest data from ESPC. This indicates growing interest among buyers compared to the same period last year which bodes well for the rest of 2024.

While Dunfermline retained its popularity among buyers, boasting the highest volumes of property sales, there was a slight dip of 10.5% compared to the previous year’s figures. On the other hand, Leith emerged as the second most sought-after location, witnessing a remarkable 17.8% increase in sales volumes year-on-year. The real standout, however, was Corstorphine, which appeared to be particularly appealing to families and enjoyed a surge of 38.3% in sales volumes annually.

Which Types of Property Proved the Most Popular?

In the nation’s capital, two-bedroom flats in Leith stole the spotlight with a solid 16.2% increase in sales volumes, closely trailed by one-bedroom flats, which saw a notable 33.3% growth.

Gorgie, often highlighted as one of Edinburgh’s increasingly popular neighbourhoods, demonstrated its appeal with a striking 83.3% rise in sales volumes for one-bedroom flats this quarter – unsurprising, perhaps, given it’s one of the Capital’s most affordable property types.

Beyond Edinburgh, Dunfermline witnessed steady demand, particularly for three-bedroom houses, which saw an 8.3% annual increase in sales volumes, reflecting a consistent interest in this property type.

Buyers Enjoyed More Choice as New Property Listings Increased 13.6% Annually

Scotland’s property market buzzed with activity between November and January – showcasing a remarkable 13.6% increase in new properties coming to the market compared to the same period last year. This increase in activity from property sellers increases choices for buyers and fosters healthy competition. It’s a welcome shift, especially considering the prolonged post-pandemic period where demand consistently outstripped supply.

The bustling hubs of Dunfermline, Leith, and Corstorphine stole the spotlight yet again, boasting robust levels of new properties coming to the market. Dunfermline saw a notable growth of 19.3%, Leith surged by 17%, and Corstorphine enjoyed a substantial 24.4% increase in available properties compared to the previous year.

Reflecting the sales volume trends reported above, two-bedroom flats in Leith and three-bedroom houses in Dunfermline dominated the listings. However, it’s the 60% spike in one-bedroom flats available in Leith that is the most interesting, indicating a change in market dynamics as more landlords seek to sell in the wake of the Government’s latest rent legislation – no doubt a welcome shift for first-time buyers looking to settle in the Capital.

Properties Attained 101.5% of Their Home Report Valuation at Sale

On average, homes fetched 101.5% of their Home Report Valuation at sale – marking a slight decline of 3.1% compared to the previous year.

While this is a slight decrease, property sellers still have much to be optimistic about. From a buyer’s perspective, this is a very welcome shift from the last few years where significant premiums over the Home Report Valuation were commonplace and put significant strain on affordability.

Commenting on the recent findings, Haley Mackay, Property Sales Manager at MOV8, said:

“Sale prices [for our clients] remain strong, with average selling prices continuing to meet the Home Report Valuation or higher at sale. This suggests that buyers can have faith in a property’s valuation and that the market expectations of buyers and Chartered Surveyors are well aligned.”

Average Property Selling Price Across Key Scottish Markets Fell 4.4% to £271,106

The average property selling price across Edinburgh, the Lothians, Fife, and the Borders dipped by 4.4% from November to January, reports ESPC – settling at £271,106.

Zooming in on local markets, we see some promising growth. In West Fife & Kinross, prices rose by 3.5% annually to an average of £210,454, while West Lothian experienced a remarkable 28.6% rise – reaching £239,424.

The City of Edinburgh witnessed a 4.2% decrease in property prices on average. Yet, the market saw a notable increase in the sale of smaller, more affordable properties, which could skew the overall figures. Meanwhile, the South West of Edinburgh enjoyed a substantial 10.7% increase in property prices, soaring to £316,822. In contrast, the city’s North West experienced the sharpest decline, with average prices dropping by 19.8% to £247,164.

For budget-conscious buyers, Dunfermline offered the most affordable option with one-bedroom flats averaging £110,685, while Gorgie emerged as a hotspot for first-time buyers in Edinburgh, offering one-bedroom flats at an average price of £148,518.

Increased Number of Buyers Purchasing Homes ‘Subject to Sale’ of Own Property

As we get into 2024, there have been no major shifts in how people fund their property purchases, with traditional methods such as mortgages, regular savings, and financial assistance from friends and family remaining the most popular avenues.

However, one noteworthy trend is the increasing number of purchases “subject to sale” of the buyer’s existing property. While this approach offers flexibility, it poses challenges in verifying the source of funds until the sale is finalised. Consequently, it may cause delays in completing necessary compliance checks and paperwork – potentially prolonging the conclusion of missives. Sellers should be mindful of this when considering offers from buyers whose property sale is not yet complete.

Thinking of Selling Your Property?

If you’re thinking of selling your property, our team of experts is here to help you get the best possible price in the quickest possible time. With decades of experience under our belt, we’ve seen all possible market conditions over the years and are perfectly placed to help you navigate the current property landscape. Get in touch today!

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