Despite rising interest rates and wider economic fluctuations, the local property market in Edinburgh and the Lothians has remained buoyant and robust in 2023, demonstrating its continued resilience and attractiveness to buyers.
The current property market is far from being predictable and has been a source of delight for sellers in recent years due to record levels of demand. However, due to uncertainty surrounding mortgage products as a result of rising interest rates, the market’s pace has slowed down somewhat in comparison to the past few rather dysfunctional years of market activity. A balance between supply and demand is certainly welcome and beneficial.
In this article, we will delve into all the latest statistics and trends in the local property market as one of the top listing firms in the local area.
Understanding Local Dynamics: The Unique Nature of the Edinburgh and Lothians Market
It’s essential to recognise that the UK property market is not a monolithic entity. Instead, it comprises a patchwork of local markets, each with its own distinctive dynamics. At Neilsons, when it comes to selling, we focus on the intricacies of the Edinburgh and Lothians property market, ensuring that we provide our clients with highly tailored, relevant, and personalised advice and services. Ignore any negative doom and gloom noise generated by sensationalist national journalists based in the South East of England and stay laser-focused on the local market’s specific performance here.
ESPC: Average Selling Prices and The Latest on the Local Market
ESPC report that the average selling price for property in East Central Scotland is now £274,162. In Edinburgh, the average selling price is now £289,213.
Only 16% of properties listed on ESPC are currently advertised as ‘Fixed Price’, with 84% marketed at ‘Offers Over’ which is a pricing strategy typically reserved for more buoyant markets. Furthermore, just 8% of properties have “fallen through” after going Under Offer indicating that 92% of properties conclude after going Under Offer with an ESPC member firm.
Currently, there is demand for all different types of properties in the region from one bedroom flats to larger family homes across many different areas as buyers have varying needs and requirements.
There is currently 52% more available stock on ESPC.COM at present, compared to last year, which is bound to be welcome news to buyers.
The Edinburgh and Lothians Property Market: A Hotbed of Activity in June 2023
Last week, from the 5th of June onwards, we experienced our busiest week for offers, notes of interest, and closing dates in our history at Neilsons. With over 80 offers received, 100 notes of interest registered, and 14 closing dates, it’s clear that buyer interest remains strong. Our successful marketing approach in the local market has also enabled us to attract and engage potential buyers effectively. In addition, this is the busiest June so far for Neilsons yet for new listings with 65 properties listed on the market in just two weeks.
Neilsons have received 1,350 offers this year alone, averaging over 3 offers per property listed.
Despite fluctuations with interest rates and the changing availability of mortgage products, the average selling time at Neilsons remains impressively short, with most properties typically finding buyers in just a few weeks. This reduction in selling time has further shortened in recent months which is a testament to our efficient and effective marketing strategies, ensuring optimal exposure and our ability to attract qualified buyers.
This year alone, Neilsons has sold over 406 properties, achieving an average of 9% over the asking price.
In the competitive Edinburgh and Lothians property market, Neilsons has consistently outperformed local averages, with 40% of our properties in 2023 receiving multiple offers at competitive closing dates. This figure surpasses the ESPC average of 25%, further emphasising the effectiveness of our marketing approach in generating interest and demand for our listed properties. This impressive feat highlights not only our expertise in accurately valuing properties but also our ability to negotiate favourable deals for our clients.
A Look into the Future: The Promising Outlook for the Edinburgh and Lothians Property Market
As we move forward, the future of the Edinburgh and Lothians property market looks incredibly promising. Whilst there is welcomed cooling in the market when we compare to the super-charged and unhealthy market conditions immediately following the lifting of Covid-19 restrictions, buyer demand remains high and there is more growing stock available to satisfy large buyer demand. Rates do seem to be constantly adjusting due to the wider economic situation but the typical scenario that unfolds is that buyers initially hesitate for a brief period, grappling with the rates, but eventually come to terms with the new reality and re-adjust. Once they re-adjust, they are swiftly moving forward and taking action as we can see from the latest data in the local market.
Many commentators take the view that we are approaching the peak of the interest rate increase cycle. When inflation is shown to be under control interest in mortgage rates should reduce which will only stimulate demand so perhaps despite the gloom and doom in the media, now may prove to be a good time to make a move before the market overheats again…
Property Appraisal: Curious about the value of your property in today’s market as you plan your next move? Book online here for a free and accurate property appraisal. Our expert valuers will assess your property’s unique features and local market conditions to provide you with a detailed, comprehensive and reliable valuation and appraisal report.
Buying and/or selling? Get in touch: whether you are looking to buy or sell a property in Edinburgh and the Lothians, Neilsons are here to help. Book a free no obligation initial consultation to speak with one of our friendly and knowledgeable legal experts who will be delighted to assist you.