Throughout 2015 and in the first half of 2016, the number of properties changing hands has been at the highest levels seen since the ‘credit crunch’ of 2008. As the leading property sales company in East Central Scotland, we wanted to share with you what we have been seeing happening in your local property market.
What Are We Seeing Happening in the Market?
The latest market reports from ESPC, which cover the period of March 2016 and May 2016, have stated that the number of properties being sold across East Central Scotland has remained pretty static annually with no significant change.
Since the start of the year we have seen the number of properties coming onto the market being consistently outgunned by the number of properties selling, with supply being unable to keep up with demand from buyers. In contrast to the latest report from the ESPC, and in-keeping with what we ourselves have seen since the start of the year, at MOV8 we have seen an increase of 12% year-on-year in the number of new properties coming onto the market with MOV8 and an increase of 19% year on year in the volume of properties selling. This continued strong demand is bringing selling times down and pushing prices gradually upwards, with more properties achieving, or exceeding, the Home Report valuation.
Buyer Demand Still Strong in the Marketplace
As June comes to a close and we welcome the arrival of Summer, we are still seeing extremely healthy buyer demand. While the volume of property sales across East Central Scotland has remained pretty static when comparing the period of March 2016 and May 2016 to the previous year, the median selling time for properties across East Central Scotland has decreased from 45 days to 22 days. From our own personal experience, this does seem to be the case.
There has been some uncertainty raised by the media following the result of the referendum on the UK’s continued membership in the EU on 24 June 2016, with the UK voting to leave the EU. We have maintained throughout the campaigns and build-up to the referendum that the Scottish property market is unlikely to be massively affected, whichever way the result went, with the vast majority of property purchases being by people who already live relatively locally. That said, if there is a wider economic effect of the decision to leave the EU, that will of course have an effect on the housing market and that wider effect remains to be seen.
Since the ‘Brexit’ result, we have not seen any decrease in buyer demand for property. There has been some financial market volatility since the result, however it appears that the markets are already rallying after the initial uncertainty and it is unlikely that mortgage liquidity will be significantly affected. Indeed, a recent interview in The Guardian newspaper with ‘Money Saving Expert’ and consumer champion Martin Lewis, The Guardian stated that, with the Bank of England proposing to inject money into the economy, leading to bond yields falling, there was a possibility that there may be even more sub-2% mortgage deals available. In that case, whilst the overall economic outlook may be slightly less certain, purchasing and continuing to pay for the loan on a property may actually become cheaper as a result of this recent decision and that may help to mitigate against any other negative effects of the vote when it comes to the property market in Scotland.
The fact that the Scottish property market is less reliant on wealth from the City of London also leads us to believe that confidence in the local property market will not be negatively affected. Indeed, from what we have seen in the days since the result, it has been business as usual.
Check out our article on the impact ‘Brexit’ EU Referendum vote may have on the property market for more of our thoughts on this.
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.