MOV8’s Market Analysis February 2016
Throughout the past 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 very strong start. Here’s what we have been seeing in the local property market.
What Are We Seeing Happening to House Prices?
Continuing the trend that we experienced throughout 2015, house prices are inching upwards, with an annual increase of 1.9% within Edinburgh during the period from November 2015 to January 2016. This places the average selling price within Edinburgh at £221,473, up from £217,339.
Buyer Demand Outstripping Properties Coming to Market
Throughout 2015 we saw a consistent pattern of demand outstripping supply. This was particularly acute from the middle of last year onwards. This has put sellers in a very strong position.
As a result, however, our level of available housing stock is sitting about 50% lower than it was this time last year so there is a real need for more property sellers to make the decision to put their properties on the market to address the high levels of demand.
If the quantity of properties selling continues to outstrip the supply of new properties coming to the market, there is a danger that it will drive prices sharply upwards, making it even harder for property buyers to be able to afford a new home. The problem seems to be stemming, at the moment, from property sellers being reluctant to put their own properties on the market because they worry that they will struggle to find a property to buy. This of course perpetuates a cycle that could, in turn, artificially inflate the prices of properties that are currently on the market.
With a shortage of properties on the market leading to selling prices going up and selling times coming down, 24% of properties sold by MOV8 in January 2016 were under offer in less than two weeks. This means that there hasn’t been a better time in the past few years to get your property onto the market if you are thinking of moving home.
We would encourage anyone who is thinking of selling their property this year to take advantage of the current market conditions and to get their property onto the market as soon as possible. Check out our recent article about the current housing shortage for more information.
Number 1 for Property Sales
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 in 2015 compared with 2014. This is something we are extremely proud of, and we are looking forward to helping even more property selling clients in 2016.
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 on 0345 646 0208 or by emailing [email protected] 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.