ESPC House Price Report - August 2013
Summary
- The number of homes sold through ESPC in the three months to August rose by 35.9% annually.
- The number of homes coming onto the market also rose, though at the more modest annual rate of 13.5%.
- Despite the rise in market activity most areas have not seen a substantial rise in the average house price.
- In Edinburgh the average price of a property sold between June and August stood at £219,313 – up 1.8% from the same period in 2012.
- 37.2% of homes sold between June and August this year achieved their Home Report valuation, up from 28.7% a year ago and 22.7% in 2011.
- Properties at the lower end of the market are less likely to achieve their valuation than those in higher price brackets.
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Full report
Conditions in the East Central Scotland property market improved further in the three months to August. The number of homes sold through ESPC between June and August rose by 35.9% annually and to the highest level for more than five years as buyers continued to return to the market.
Activity among sellers grew with the number of homes coming onto the market over the last three months also rising, though at the more modest annual rate of 13.5%.
Despite the sharp rise in market activity, most areas have not seen a substantial rise in the average house price. In Edinburgh the average house price in the three months to August stood at £219,313 – up 1.8% annually – while in West Lothian a year-on-year rise of 1.6% brought the average house price in the area to £182,963. In East Lothian and Midlothian annual declines of 5.4% and 1.9% brought the average price in these areas to £209,544 and £182,963 respectively.
David Marshall, business analyst with ESPC said:
"The number of homebuyers has been rising since the start of 2012, but this rise has been particularly marked over the last few months with sales rising to their highest level for more than five years. It’s worth noting though that the number of homes being sold is still about 25-30% less than what you’d have seen at the peak of the market and in most cases where prices are rising, they are doing so at a comparatively modest rate.
"The majority of sales are still being completed for less than the original Home Report valuation, although sellers are starting to enjoy a little more success in negotiations than has been the case in recent years. 37.2% of homes sold between June and August this year achieved their valuation, up from 28.7% during the same period in 2012 and from 22.7% in 2011 and this reflects the fact that market conditions are becoming more favourable for sellers.
"It’s particularly heartening to see more first time buyers coming back to the market. Sales of smaller properties were hit hardest following the market downturn but have started to improve this year and ESPC’s First Time Buyer Events have attracted record numbers of people looking to get on the ladder this year."
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