The Edinburgh Solicitors Property Centre (ESPC) has reported that property prices in The Lothians have fallen 5.3% and in Edinburgh they have fallen 3.6% in the past quarter of the year. Is this actually true though? Or are the statistics potentially misleading?
It isn’t surprising to see that the ESPC statistics are showing a drop in property prices, especially when the statistics for last year showed a price rise of 9.5%. My feeling, when that price rise was reported, was that it was a reflection of a different mix of properties selling, with more higher value properties selling compared to the previous year. When volumes of transactions are historically low, it is easier for the statistics to be affected by a slightly different mix of properties selling.
Our experience in the past couple of years has been that property prices throughout Edinburgh have been quite stable. We aren’t experiencing notably different conditions this year compared to last year. However, in the last few months we have seen properties across the board selling, from the highest to lowest values.
The property market continues to experience serious challenges, particularly with a difficult general economic backdrop. However, property sellers have to not get too caught-up in statistics. Property sellers need to know that the reality of the situation is that there are active buyers out there in the marketplace who are looking to purchase properties and that a good property at the correct price with a good estate agent has a great chance of selling.