MOV8’s Property Market Analysis April 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. 2016 is already off to a very strong start so, as the leading property sales company in East Central Scotland, we thought we’d share with you what we have been seeing happening in your local property market.
What Are We Seeing Happening in the Market?
For the period from January 2016 to March 2016, the average selling time for a property in East Central Scotland, reported by the ESPC, was 41 days down from 69 the year before.. This increase in properties selling in a shorter time is certainly something that we have noticed, with the average selling time for a property marketed by MOV8 Real Estate sitting at 21 days, approximately 48% below the overall average.
Additionally, during the same period 87% of homes sold through MOV8 achieved a selling price at least equal to their asking price, with 77% exceeding the asking price.
So far this year, from January 2016 to March 2016, the number of properties coming onto the market has decreased year-on-year by 3.6%, however it is worth bearing in mind that in the first quarter of 2015 the market was preparing for the replacement of Stamp Duty by Land and Building Transaction Tax, which led to an influx of higher end properties onto the market. Whilst the volume of new properties coming onto the market has decreased across the board, at MOV8 we have seen a 21% increase in properties, year-on-year, coming onto the market.
Although the number of new properties coming onto the market may have decreased, the overall number of property sales agreed has increased by 2.9% annually, which we have certainly noticed with an increase in the number of sales at MOV8 of 23% in the same period..
Demand for Properties Continues to Outstrip Supply
Throughout 2015 we saw a consistent pattern of demand from property buyers outstripping the supply of properties coming to the market. This was particularly acute from the middle of 2015 onwards and it has put property sellers in an extremely strong position.
If the quantity of properties selling continues to outstrip the supply of new properties coming to the market, there is a danger that this will continue to 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.
For more information on what to do if you are thinking of selling your own home and haven’t yet found another one to buy, including the real advantages of doing things in this order, check out our article here for some useful tips.
The shortage of properties on the market is leading to selling prices going up and selling times coming down, something that we can attest to with 41% of properties sold by MOV8 in January and March 2016 going 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 about this.
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 61% more sales agreed in 2015 compared with 2014 and it is something that we are extremely proud of. We look 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 with us by calling 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 can help you with suggestions for maximising the appeal of your property to buyers and discuss current market conditions with you.
For more tips about preparing for a property valuation, you can also check out our YouTube video, Getting the Best Possible Property Valuation.