Small property sales soar in hottest July for 7 years

July has reported a 50% rise in sales of smaller properties in Edinburgh, the Lothians and Fife contributing towards the highest overall sales for the month since 2007. According to latest figur...

July has reported a 50% rise in sales of smaller properties in Edinburgh, the Lothians and Fife contributing towards the highest overall sales for the month since 2007. According to latest figures released today by ESPC, a property marketing company based in East Central Scotland, the number of one bedroom homes sold rocketed between May and July while sales of three bedroom homes rose by a comparatively modest 22%.

David Marshall, Business Development Manager with ESPC commented:

“The rise in buyer activity has been most notable in the market for smaller homes but it's worth bearing in mind that it was this end of the market that was hit hardest by the economic downturn. With first time buyers and buy-to-let investors returning to the market, it's perhaps no surprise that sales here have shown the greatest increase.”

Activity among sellers also rose, with the number of homes coming onto the market rising by 18% annually over the same period.

The rise in market activity means that conditions are continuing to become more favourable for sellers. In Edinburgh, 67% of homes sold during the three months to July achieved a selling price equal to or in excess of their Home Report valuation. This marked an increase from 43% a year ago and is the highest level on record since the introduction of Home Reports in 2008.

In other areas of East Central Scotland there has also been a notable increase in the proportion of sales where Home Report valuation was achieved. Across the rest of the Lothians and Fife 44% of homes sold between May and July achieved their original valuation compared to just 23% 12 months.

House prices have continued to rise on an annual basis in most areas, with inflation typically between 3 and 6%. In Edinburgh, for example, the average house price rose by 2.9% over the last year and now stands at £226,220. Although West Lothian saw a decline in the average house price, this largely served to offset a decline during the same period a year ago.

David Marshall explained:

“There can still be a degree of volatility in the average house price within but in most cases where sharper increases are observed these come on the back of a fall the previous year and vice versa. In most areas we're now starting to see house prices rise again and with the supply of homes coming onto the market for sale on the rise this should help moderate the rate of inflation in months ahead.

Selling times have quickened over the last year, with the median selling time down from eight weeks last year to five weeks this year and overall the picture remains positive for those looking to move home.”

Key Points

•Between May and July the number of homes sold across Edinburgh, the Lothians and Fife was 28% higher than during the same period last year.

•The number of homes coming onto the market also rose, with new instructions between May and July up 18% annually.

•67% of homes sold in the Capital achieved a selling price equal to or in excess of their Home Report valuation, the highest level on record.

•In most areas house prices are higher than at this time last year. In Edinburgh the average house price stands at £226,220 following a year-on-year increase of 2.9%.

•The popularity of the Offers Over approach continues to rise among sellers. 64% of new instructions between May and July were marketed in this manner compared to 40% a year ago.