MOV8’s Market Analysis March 2016
Throughout the past year, the number of homes changing hands has been at its highest level since the onset of the ‘credit crunch’ in 2008. 2016 is already off to a very strong start so, as the leading property sales company in East Central Scotland, we thought we’d share with you what we have been seeing happening in your local property market.
What Are We Seeing Happening to House Prices?
For the period of December 2015 to February 2016 house prices across Edinburgh decreased by 1.7% annually according to recently-released ESPC statistics. This places the average selling price within Edinburgh at £222,628, down from £226,441 in the same period the year before.
When looking at this price drop, it is worth bearing in mind that prices in Scotland were artificially inflated in the run-up to 1 April 2015 as the proportion of higher-value property sales in Scotland increased immediately prior to the introduction of Land and Buildings Transaction Tax (LBTT) as a replacement for Stamp Duty on 1 April 2015.
Between January 2016 and February 2016, 80% of homes sold through MOV8 achieved a selling price at least equal to the asking price, with 66% exceeding their asking price.
Buyer Demand Continuing to Outstrip Properties Coming to Market
Throughout 2015 we saw a consistent pattern of demand from property buyers outstripping the supply of properties coming to the market. This was particularly acute from the middle of 2015 onwards and it has put property sellers in an extremely strong position.
If the quantity of properties selling continues to outstrip the supply of new properties coming to the market, there is a danger that this will continue to drive prices sharply upwards, making it even harder for property buyers to be able to afford a new home. The problem seems to be stemming, at the moment, from property sellers being reluctant to put their own properties on the market because they worry that they will struggle to find a property to buy. This of course perpetuates a cycle that could, in turn, artificially inflate the prices of properties that are currently on the market.
For more information on what to do if you are thinking of selling your own home and haven’t yet found another one to buy, including the real advantages of doing things in this order, check out our article here for some useful tips.
With a shortage of properties on the market leading to selling prices going up and selling times coming down, 34% of properties sold by MOV8 in January and February 2016 were under offer in less than two weeks. This means that there hasn’t been a better time in the past few years to get your property onto the market if you are thinking of moving home.
We would encourage anyone who is thinking of selling their property this year to take advantage of the current market conditions and to get their property onto the market as soon as possible. Check out our recent article about the current housing shortage for more information about this.
Number 1 for Property Sales
For the second year in a row, MOV8 Real Estate sold more properties than any other Solicitor Estate Agent in Edinburgh and the Lothians. Over the course of 2015, MOV8 sold well over 1,200 properties and put over 1,300 on the market. That is a staggering 61% more sales agreed in 2015 compared with 2014 and it is something that we are extremely proud of. We look forward to helping even more property selling clients in 2016!
Are You Thinking of Selling Your Property in 2016? Please Speak to Us!
If you are thinking about selling your property, please do get in touch with us by calling 0345 646 0208 or by emailing [email protected] to organise a free property valuation or to have a preliminary chat with us about the selling process in Scotland. Our valuers can help you with suggestions for maximising the appeal of your property to buyers and discuss current market conditions with you.
For more tips about preparing for a property valuation, you can also check out our YouTube video, Getting the Best Possible Property Valuation.
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