As we find ourselves nearing the end of the first month of 2016, the property market is certainly maintaining the momentum it gathered in 2015. Throughout last year, the number of homes changing hands has been at its highest level since the onset of the ‘credit crunch’ in 2008 and 2016 is already off to a strong start.
A Record Year in 2015
For the second year in a row, MOV8 Real Estate sold more properties than any other Solicitor Estate Agent in Edinburgh and the Lothians. Over the course of 2015, MOV8 sold well over 1,200 properties and put over 1,300 on the market. That is a staggering 61% more sales agreed compared to 2014.
This is something we are extremely proud of, and we are looking forward to helping even more property selling clients in 2016.
What Are We Seeing Happening to House Prices?
In line with the trend that we have experienced throughout 2015, house prices are continuing to head north, with an increase of 4.9% across east central Scotland in the period from October to December 2015. Across the City of Edinburgh itself, the average property price, during the same period, rose by 7.1% annually, from £211,776 in 2014 to £226,731 in 2015.
There are sections of the market where prices are rising more quickly than the average. For example, one bedroom flats in the Polwarth, Shandon and Tollcross areas of Edinburgh have seen an increase of 27.6% from £127,768 to £163,016, year-on-year as these areas become increasingly popular with First Time Buyers.
Caution, as always, must be exercised when looking at these sorts of statistics as the types and sizes of one-bedroom flats do vary and it is possible that there has been an increase in the proportion of sales of larger one-bedroom flats, for example, in these areas. Nevertheless, these figures make very positive reading for anyone who is thinking of selling a property of this type in these areas.
Buyer Demand Outstripping Housing Supply
In 2015, the number of homes coming onto the market with MOV8 Real Estate rose by 41% annually, while the number of properties selling was a staggering 61% higher than in 2014. At MOV8, throughout 2015 we’ve seen a consistent pattern of demand outstripping supply since the middle of last year, which has put sellers in a very strong position. This is something that, based on our experience, will continue in the short term. However, as we head further into the first quarter of 2016 we anticipate that increasing numbers of sellers will take advantage of the current market, helping to balance-out supply and demand.
Typically, in the final quarter of the year, the number of homes available for sale dips, largely due to a perception that the market is not as strong in the winter months, but we can definitely say that this is not something we have experienced at MOV8. Quite the opposite in fact.
In Spring 2015 (February to June), MOV8 sold 579 properties. In that same period, we brought some 647 properties to the market. This equates to a ratio of 89% of sales. In Winter 2014-15 (September to January), MOV8 sold 355 properties, while bringing 379 to the market in the same period. This equates to a ratio of 94% of sales in Winter. In short, Winter is a great time to sell a property, with buyers continuing to search for their ideal property and less competition from other property sellers.
Properties are continuing to sell quickly and sellers are achieving fantastic results. Throughout 2015 MOV8 saw 51% of properties under offer in less than four weeks on the market. Already this year at MOV8 we’ve had more than 20 properties going under offer within two weeks of going on the market.
In 2015, 77% of homes sold through MOV8 achieved a selling price at least equal to the asking price, with 58% exceeding their asking price. With buyers still out in force during the winter months, we are beginning to see sellers taking advantage of the relative lack of competition to achieve some fantastic results as things begin to ramp up.
Are You Thinking of Selling Your Property in 2016? Please Speak to Us!
If you are thinking about selling your property, please do get in touch to organise a free property valuation or to have a preliminary chat with us about the selling process in Scotland. Our valuers will help you with suggestions for maximising the appeal of your property to buyers as well as discuss current market conditions with you.
New Branch Now Open – 274 Leith Walk!
Opening its doors for the first time on 25 January 2016, we are thrilled to announce that our new branch on Leith Walk is open for business.
This latest branch makes it even easier for buyers and sellers to pop in and see us for all their real estate needs, including purchase conveyancing and advice, independent mortgage advice and arranging a pre-sale valuation. It also gives a convenient location for existing clients to drop-off paperwork or have a chat with an adviser.
If you are in the area, and thinking of buying or selling a property in 2016, call in and see us!
For an inside look at our new location, check out our article about our new branch.
To arrange your free property valuation or selling quote today, just call 0345 646 0208 or email [email protected] and we will organise an appointment at your convenience.