SELLERS in and around the capital continue to find conditions in the local housing market favourable, with around nine of every ten properties selling above Home Report valuation.
According to Warners Solicitors and Estate Agents, almost 90% of Edinburgh homes sold since December have achieved a price in excess of their Home Report valuation – around a 20% increase on last year’s numbers.
Although good news for sellers, conditions aren’t so favourable for those looking to purchase a property in the capital. Thanks to the rise in demand, more buyers than ever are being left paying over the odds in order to secure a property.
David Marshall, Operations Director with Warners explained: “The property market in Edinburgh and the Lothians remains challenging for buyers, and in particular those who are looking to get onto the property ladder.
“Take the example of a first-time buyer looking to buy a one-bedroom flat in Edinburgh valued at £130,000.
“As properties are achieving an average premium of 6.7% above their valuation, on average, we can expect this flat to sell for £8,710 more than its valuation.
“For many that presents a hurdle that is difficult to overcome without turning to the ‘Bank of Mum and Dad’ for assistance, if that is an option open to them.”
However, there is a ray of hope for Edinburgh house hunters as the number of homes coming onto the market continues to show signs of improvement.
New listings through Warners have risen by just under 10% on an annual basis as the strong conditions tempt more sellers to get their homes onto the market.
David added: “The improvement in the supply of properties to the market will help to ease pressure on buyers over the medium term.
“We are also seeing signs that the property market south of the border has started to slow down somewhat and it is likely that this will have a knock-on effect to the local market as we move forward.
“At this stage we continue to expect there to be greater balance between supply and demand as we move forward in 2018 and this will help to moderate some of the high premiums we are currently seeing in the months ahead.”
Warners Solicitors and Estate Agents is one of Edinburgh’s leading estate agents, operating three property centres throughout the city.
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