The Current State of the Property Market
The first quarter of 2023 has brought about some changes in the housing market. Despite financial fluctuations, there is still a high demand for homes. This demand, however, is now accompanied by a more cautious approach from buyers. Let's take a closer look at the key trends and insights from the House Price Report for March 2023.
Decrease in Property Listings, Increase in Popularity
In the first months of the year, new property listings in areas like Edinburgh, the Lothians, Fife, and the Borders were down by 2.6% compared to the previous year. Homeowners were waiting to see how the market would unfold before listing their properties for sale. However, certain areas experienced an increase in popularity. South Queensferry saw a significant rise of 37% in new property listings, followed by Newington with a 27% increase, and Dunfermline with a 26.7% increase. Other areas, such as Leith and Corstorphine, also saw notable increases. The seaside towns of St Andrews, North Berwick, and Musselburgh recorded increases of 36.8%, 19.2%, and 10.1% respectively.
Caption: Despite financial changes, the housing market continues to perform well
Consistent Selling Prices, Longer Selling Times
Although selling prices have remained relatively consistent across Edinburgh, the Lothians, Fife, and the Borders, properties are taking slightly longer to sell compared to previous years. The average selling price of properties in these areas increased by 1% year-on-year to £270,284. This increase highlights the high demand for properties, which has pushed up prices. Midlothian experienced the highest price increase, with the average selling price rising by 16.1% annually to £263,437. West Fife & Kinross followed with a 6.3% increase year-on-year, reaching an average selling price of £206,158. The City of Edinburgh saw a 0.9% rise in average property selling prices, reaching £286,108. In terms of popularity, two and three-bedroom properties remained highly sought after in Edinburgh.
Caption: Buyers are adopting a slightly more cautious approach
Buyers Paying More for Their Dream Homes
Despite the cooling of the market, there is still evidence that buyers are willing to pay over the odds for their dream homes. In the first quarter of 2023, 76.9% of properties sold for their Home Report valuation or higher. On average, properties achieved 102.8% of the Home Report valuation at the time of sale. This indicates that the property market in these areas remains competitive. Comparing these figures to the pre-pandemic period of January-March 2019, we can see that the market is gradually returning to normal levels. It is worth noting that East Lothian and East Fife experienced the highest percentage of Home Report valuation attainment, achieving 104.3% and 103% respectively.
Caption: Buyers are willing to pay over the odds for their dream homes
Market Rebalancing and Median Selling Time
The market in Edinburgh, the Lothians, Fife, and the Borders is currently rebalancing after a period of high demand during the pandemic. The median selling time for properties has cooled slightly, with the median time to sell now standing at 28 days. This is nine days slower than the previous year and one day slower than the pre-pandemic period of January-March 2019. The areas with the fastest selling times were East Lothian with a median time of 25 days, followed by the Borders at 28 days, and the City of Edinburgh at 29 days.
Caption: The market is rebalancing after the post-lockdown period
Expert Advice and Affordability
Paul Hilton, CEO of ESPC, emphasizes the importance of seeking expert advice from a solicitor estate agent and staying informed about monthly affordability advice from ESPC Mortgages. With the cost-of-living crisis and interest rate increases, buyers are considering affordability more seriously, leading to a slightly slower pace of sales and some reduction in sales volumes. Out-of-town areas such as South Queensferry, Dunfermline, and Musselburgh, which offer more space and good transport links, remain popular with first-time buyers.
If you are thinking of buying or selling property in Edinburgh, the Lothians, Fife, or the Borders, make use of the resources available from ESPC. They provide free phone services to connect you with property experts who can answer your questions. Sellers can also benefit from a free property valuation with ESPC agents.
The property market in these areas is dynamic and ever-changing. Stay informed and make the most of expert advice to navigate the market successfully.
Find out more about our House Price Reports, read our House Price Report FAQs, and explore average property selling prices for different areas and property types in our house price table. For historical data, refer to our house price spreadsheet.
ESPC is here to help you with every step of your home buying and selling journey. Start your search for properties for sale today!
