ESPC House Price Report - October 2011
07 November 2011
- House prices in the three months to October were in line with, or slightly below, 2010 levels in most areas.
- In Edinburgh the average house price recorded between August and October was £217,867 - 2.1% lower than during the same period last year.
- The number of homes available for sale is lower than at this time last year but still above levels that would be expected under normal market conditions.
- 71% of properties sold at Fixed Price were secured for less than the asking price - up from 61% during the same period last year.
Overview
Latest house price figures released by ESPC, the largest
property marketing firm in East Central Scotland, reveal that
average house prices in most areas remain at or below 2010 levels.
In Edinburgh the average house price between August and October
stood at £217,867, down 2.1% compared to the same period a year
ago.
A recent slowdown in the number of properties being put on the
market means that there are fewer properties available for sale
than at this time last year. The total number of properties on the
market is still around 40% higher than would typically have been
seen at this time of year prior to the 'credit crunch'. With the
number of people in a position to buy still relatively low,
competition between sellers remains high.
Over the last three months, 71% of properties sold at Fixed Price
have been secured for less than the asking price. During the same
period last year that figure stood at just 61%.
David Marshall, business analyst with ESPC commented: "There has
been very little change in the market over the last few months. The
number of homes on the market is higher than you would normally see
at this time of year whilst the number of active buyers is still
lower meaning that market conditions strongly favour those who are
in a position to buy. Buyers are frequently able to negotiate
discounts on properties and that has helped to bring house prices
in most areas back down from the high levels we saw last
year.
"The market is most challenging for sellers of smaller properties
with activity from first time buyers and buy-to-let investors both
well below pre-credit crunch levels. By comparison, demand for
family homes is typically more robust although even here the number
of homes selling is still below what would have been seen prior to
the economic downturn."
Edinburgh
The average house price in Edinburgh in the three months to
October was £217,867. This represented a decline of 2.1% from the
level of £222,459 recorded during the same period last year.
In the City Centre the average house price stands at £230,820
following an annual fall of 9.5%, however this decline followed a
rise of 10.6% the previous year meaning that the average price in
the area was in line with 2009 values.
David Marshall explained: "In general, areas that are seeing
sharper falls this year experienced greater rises last year and
vice versa meaning that prices are generally back in line with what
we were seeing in 2009. Many people, particularly first-time
buyers, are still facing difficulties securing mortgages and the
concerns many people are facing over job security are also
constraining demand.
"Consumer confidence is also low due to economic uncertainty at
home and abroad. Recent events in the Eurozone are likely to
exacerbate this insecurity. Balanced against this is the fact that
low interest rates mean many sellers do not feel under pressure to
accept lower offers. We are seeing that buyers who are willing to
hunt around are having success in securing significant discounts on
properties."
Lothians
In East Lothian the average house price between August and
October was almost unchanged compared to a year ago. A rise of just
£101 took the average price in the area from £205,353 in 2010 to
£205,454 this year. Midlothian saw prices fall slightly with a 3.7%
annual decline bringing the average house price in the region to
£164,465.
West Lothian saw a sharp rise of 16.5% which took the average
price in the area to £174,318 but this increase was attributable to
a rise in the proportion of larger properties selling.
David Marshall explained: "The number of homes selling is still
relatively low meaning that in some areas a small shift in the mix
of properties selling can have a significant impact on the overall
average price. In this case we saw a greater number of large family
homes selling over the last three months which skewed the latest
average figure upwards but we should see this figure come back down
again in months ahead."
Dunfermline
The average house price in Dunfermline between August and
October was £127,636 following a small annual increase of 1%. This
was the first time since April that an annual increase had been
recorded in the average house price.
Commenting on these figures David Marshall said: "Overall the
average house price in Dunfermline is almost unchanged compared to
a year ago but it's worth noting that when you look at some
specific property types, in many cases values are lower than they
were last year. The average price of a one-bedroom flat for example
stands at £67,167 - down 4% annually - whilst the average price of
a three-bedroom house is 6% lower than in 2010 at £125,397.
"Competition amongst sellers remains strong and as you'd expect in
most cases it is the more keenly priced properties that are
attracting greater interest from buyers."
ESPC,
90a George Street,
Edinburgh,
EH2 3DF