It’s hard to believe that summer is here already and as we near the midway point of 2015 the housing market in Edinburgh and the Lothians has shown no signs of slowing down. At MOV8 we enjoyed another record-breaking month for sales, with the number of sales agreed in May up by 71% annually. A combination of improving economic conditions, greater mortgage availability and rising consumer confidence has seen buyers return to the market in large numbers and so far June looks set to be busier still.
The upturn in demand in the market is obviously welcome news for sellers and homes are spending considerably less time on the market than has been the case in recent years. During the first five months of 2015, almost half of the homes sold through MOV8 had spent less than four weeks on the market, with one in four going under offer in less than two weeks.
It is particularly heartening to see demand picking up among first time buyers. Following the economic downturn in 2008, the large deposits required to secure a mortgage prevented many buyers from getting onto the property ladder. Now, with buyers having had a few years to save, and with mortgage availability improving we’re seeing more and more people who are in a position to secure their first home.
Given the sharp rise in demand for property it’s no surprise that house prices are starting to pick up. Across Edinburgh as a whole the average price of a property sold between March and May this year stood at £235,055 according to ESPC. That’s up 10.5% from £212,671 during the same period in 2014.
Thankfully the number of homes coming onto the market has shown considerable improvement. In May, MOV8 saw a 65% annual rise in the number of sellers putting their home on the market and it will be important that this continues in the months ahead to ensure a healthy balance is maintained between supply and demand.
The National Picture
In our last market update we noted that house price growth in the local market was higher than that observed across the UK and that is still the case. In their latest report, Halifax showed that an annual rise of 8.6% brought the average price of a home in the UK to £196,067. The Nationwide House Price Index reported more modest growth with a 4.6% year-on-year increase bringing the average price of a home to £195,166.
As we move forward in 2015 we do expect to see the rate at which activity is rising in the local market level off, and this should help to ensure that house price inflation eases during the second half of the year.
As ever, if you’re thinking of buying or selling a property or if you have any questions, please do feel free to get in touch with our property experts today on 0345 646 0208 and one of our team will be delighted to help you.