Significant Increase in Sales for Edinburgh & The Lothians
The three months to July saw yet another significant increase in activity from both buyers and sellers in Edinburgh and the Lothians. ESPC reported that the number of sales recorded rose by 24.1% annually whilst the number of homes coming onto the market was 15.1% higher than the same period last year. This trend has continued throughout August for Plain Talking Property firms with many sought after properties moving to a closing date.
Although the average selling prices in Edinburgh between May and July stood at £219,772 representing a fall of 1.4% annually, we believe that the downward movement in average prices is not indicative of the market stalling, but is a consequence of more first time buyers entering the market reflecting more sales at the cheaper ”entry level”
First Time Buyers Are Moving the Market
The majority of sellers are still moving up the property ladder which is being made possible by First Time Buyer’s (FTB) activity. All PTP firms have reported a significant increase in the number of FTB viewing property which is leading to an increase in offers. With higher levels of ‘notes of interest’ in the pipeline it is anticipated that the last quarter of 2013 will prove to be a busy time for buyers and sellers alike.
Recent demand in some areas has seen ‘closing dates’ become more prevalent. It has also driven the pricing strategy of new properties coming to market with 40.1% being marketed at Offers Over compared to 25.8% during the same period in 2011
The Impact of a Closing Date
Closing dates are driven by demand and demand drives the eventual selling price of the property.
Buyers who are keen on purchasing a property which has a closing date will be required to make an offer which is typically more than the asking price. On the closing date, the seller will be presented with all offers made in order to make a decision on which (if any) they are willing to accept. One of the key components is of course the ‘highest offer’ although there are other aspects to consider. For example, an offer may be considered ‘good’ if the buyer has sold their own property and is in a position to move within the timescales which suits the seller.
Is This A Blip?
We are fairly confident that activity will remain strong throughout the next quarter with buyers and sellers continuing to be more active. If you are considering your next move, or are a first time buyer looking to enter the market, why not ask usfor a free no obligation consultation