The average selling price of residential property across Edinburgh, Lothians, Fife and the Borders rose 2.2% year-on-year to £277,326 in the December 2022-February 2023 quarter, according to the most recent house price data from ESPC.
However, sales volumes dropped 19.7% annually during this period, while new property listings decreased by 2.7%.
The median selling time of property was 22 days, highlighting that buyers are still acting relatively quickly.
On average, 80.7% of properties sold for their Home Report valuation or higher, with the average property achieving 103.6% of Home Report valuation at sale, with 23.5% of properties going to a closing date.
The latest ESPC report said: “Combining the quieter month of December, with the traditional popularity of the market in February, the most recent house price data from ESPC gives a clear overview of how the rising cost of living and financial market changes have impacted the property market in Edinburgh, the Lothians, Fife and the Scottish Borders.
“In December 2022-February 2023, new property listings in Edinburgh, the Lothians, Fife, and the Borders were down by 2.7% year-on-year as homeowners waited to see how the market panned out before listing a property for sale.
“However, there were some areas that bucked this trend, primarily out-of-town areas and places slightly outside the city centre. Dunfermline, Leith and Musselburgh saw rises in new property listings (an increase of 26.3%, 24.6% and 20.4% respectively).
“Many locations in the Borders witnessed high levels of activity during this period, with a 13.4% increase in new listings in the Borders, 125% in Galashiels and 11.8% in Peebles.”
ESPC CEO Paul Hilton said: “Buying a home will always be a good long-term investment and the market in Edinburgh, the Lothians Fife and the Borders is continuing to perform well with strong competition for properties and 80.7% of properties selling for their Home Report valuation or higher.
“There has been continued interest in areas such as Leith, Corstorphine and Blackhall, which are popular with young families and professionals who want homes with more space and good transport links to the city centre.
“The spring market is expected to be busy and there are promising signs that the market is currently continuing to outperform the pre-pandemic levels and other parts of the UK.
“This highlights once again that there is no ‘one market’ and local knowledge and insight is imperative if thinking about buying or selling.”
West Fife & Kinross recorded some of the highest price increases over the last month with the average selling price rising 15% annually to £219,292. The average selling price in Dunfermline was £210,896, up 12.7% year-on-year.
The City of Edinburgh saw average property selling prices rise 2.3% to £293,096. Following high demand for properties in the past year, two and three-bedroom properties continued to be popular with Edinburgh buyers.
There was high demand for three-bedroom houses in Corstorphine, Clermiston, South Gyle and East Craigs where the price of this property type increased by 17.5% year-on-year to £394,698. Three-bedroom houses also saw selling price increases in Blackhall, Davidsons Mains and Silverknowes, rising by 10.1% to £492,888.
Another popular property type in Edinburgh was two-bedroom flats in Morningside and Merchiston which saw average selling prices rise by 16% to £395,673. In Leith, The Shore and Granton two-bedroom flats increased by 9.4% annually to £236,414.