AS we head towards the height of summer, Edinburgh’s property market continues to heat up with the highest number of homes being bought and sold in more than a decade.
According to Warners Solicitors and Estate Agents, activity amongst buyers and sellers through the first six months of 2019 has risen substantially compared to 2018 – with the highest level of activity recorded since the market downturn in 2008.
Between January and June, Warners brought more than 550 homes to the market for sale, marking an increase of over 23% compared to the same period in 2018.
The number of offers being agreed for properties also rose sharply, with the estate agent shifting over 500 homes in the first half of 2019 – an increase of 26.5% compared to the first half of 2018.
David Marshall, Operations Director with Warners, said: “In many ways it has been a remarkable first half of the year for the local property market.
“Going into 2019 there was a feeling in many quarters that activity would be subdued as home movers awaited the outcome of Brexit. This has not been the case, with the number of homes changing hands during the first six months of the year at its highest level in more than a decade.
“With more homes coming up for sale, there is now better balance between supply and demand than has been the case in recent years. As a result, buyers are now having to pay lower premiums to secure properties than was the case a year or two ago.”
During the first half of 2018, the average premium paid to secure a home stood at 6.6%. In the last six months, this figure has decreased to 3.9%.
While less of a strain is being placed on purse strings, Warners also found that buyers have become more confident when it comes to selling, with a rising number of house hunters aiming to secure their purchase before putting their own home onto the market.
David added: “Within Edinburgh in particular, we are seeing more and more buyers submitting offers that are subject to the sale of their existing property. This marks a significant change from the situation that we saw for much of the last decade.
“In the past, when the property market was more subdued, people were primarily concerned with securing the sale of their own property before worrying about their onward purchase.
“More recently, the market has improved and home movers have gained more confidence in the likelihood of being able to secure a quick sale for their home. This has led to more people submitting offers ‘subject to sale’ then looking to get their home onto the market and under offer quickly once they have sold.
“Naturally, an offer that is made ‘subject to sale’ is not as attractive to a seller as a clean offer but it is increasingly common in the current market. This is especially true in the market for family homes where typically people will have to sell their current home in order to fund their onward purchase.
“At present there are few signs of the market slowing down and we continue to expect that activity will remain brisk over the remainder of 2019.
“The number of homes being bought and sold is likely to remain ahead of levels seen in recent years, whilst house prices will inch upwards at a rate that is broadly in line with inflation.”
Warners Solicitors and Estate Agents is one of Edinburgh’s leading estate agents, operating three property centres throughout the city.
For more information on Warners Solicitors and Estate Agents, visit www.warnersllp.com
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