ESPC, a property marketing company, released their report on the residential market in Scotland during the period of May-July 2023.
The Big Picture
The property market in Scotland seems to be holding steady, with minor fluctuations in some areas. Overall, it’s not making big leaps, but it’s not plummeting either. The market has faced some economic challenges over the past year, but it’s still maintaining its balance.
Price Changes
- Overall Stability: The average selling price of property across Edinburgh, the Lothians, Fife, and the Borders has hardly changed compared to the same time last year, increasing by just 0.4%.
- Some Increases: East Lothian and Midlothian saw small price increases of around 2%.
- Some Decreases: West Lothian had a large drop in average price by 8.2%. West Fife and Kinross dipped 4.4%, and the Borders’ average went down 2.8%.
Edinburgh Highlights
- City Centre: There was a 6% decrease in the average selling price.
- South West Suburbs: The average selling prices rose 7.4%.
Good News for First-Time Buyers
- Places like Musselburgh, Gorgie, and Dunfermline are looking attractive, with prices on average below £175,000.
- Dunfermline has the most affordable two-bedroom flats at an average of £143,452.
Selling and Buying Trends
- 80.5% of properties sold for at least their Home Report valuation, but this is down from 93.2% last year.
- Homes are selling for 4.8 percentage points less than last year.
- There’s a 62% increase in properties listed for fixed price, rather than accepting offers over.
- There was a 10.3% decrease in properties sold and a slight 1% decrease in properties listed for sale.
- Leith saw a 25% year-on-year increase in sales volume.
- Properties took six days longer to sell, and there was a reduction in properties going to a closing date.
What Does It All Mean?
Paul Hilton, the CEO of ESPC, explained that these numbers aren’t unexpected. Buyers are behaving cautiously, considering their bids carefully, and as a result, the average selling price and selling times are slowing down. The market isn’t as chaotic as it has been in the past, but it’s still doing well. It’s returning to how it behaved before the pandemic.
In simpler terms, the Scottish property market seems to be taking a deep breath and settling down after a busy period. It’s like a runner taking a steady pace after a sprint. Prices aren’t wildly swinging up or down, and people are taking a bit more time to make decisions. Whether you’re a buyer or a seller, this could be a good time to carefully consider your options, as the market seems more predictable and steady.