The median selling time for properties in the Edinburgh area is down to 15 days “indicating a thriving market where buyers are willing to snap up properties quickly and over the home report valuation” according to the latest analysis from ESPC.
An increasing number of properties in Edinburgh are selling for over their home report valuation, potentially making it more difficult for first time buyers to get a foot on the property ladder.
Almost 84% of sales in Edinburgh met or exceeded their Home Report valuation over the last three months, and properties that were marketed as offers over achieved on average 9.5% over the asking the price.
This is up from 7.5% during the same period last year.
Properties marketed at “fixed price” tend to sell for around the advertised price.
However, when it comes to “offers over” this allows more people to bid for the property with the highest offer most often the price accepted.
Just more than 86% of properties listed between March and May 2017 were marketed as “offers over”, up from 77.1% during the same period in 2016.
“There has been an overall 6.7% decrease in the number of new homes brought to market, following the trend in decreasing stock that we have seen over the last year,” said ESPC.
“This year-on-year decline has led to the continuing seller’s market, which drives up selling prices and brings down the amount of time a home is on the market, as buyer demand continues to be strong.”
ESPC business analyst Maria Botha-Lopez said: “In Edinburgh, buyers should consider that many properties are selling above Home Report valuation when they do their house search.
“So when saving for a deposit and other buying costs, they will also need to set aside extra funds if they wish to make an offer over the valuation, as this will not be covered by their lenders.”
For east central Scotland as a whole, the average selling price between March and May 2017 increased 3.3% to £221,522 compared with the same period last year.
The number of homes sold in east central Scotland in this period decreased by 4.6% annually.
The number of new homes brought to market decreased by 6.7% annually.
The median selling time in east central Scotland as a whole was 22.2% faster when compared to the same three-month period a year ago – down from 23 days to 18 days.