The property sales market in Edinburgh, Lothians, Fife and the Borders continued strong between May and July 2022, with the average selling price rising 4.8% year on year (YOY) to £288,993.
The highest property price increases of 10.4% YOY were recorded in West Lothian, where the average property sold for £238,171 during May-July 2022. This was followed by Dunfermline, with the average selling price sitting at £193,733, up 7.7% compared to the same period last year.
Edinburgh city centre saw a 6.5% YOY increase, taking the average selling price to £312,086. High demand for two bedroom flats in the capital continued, albeit showing slight signs of slowing compared to previous quarters. Buyers spent £468 181 on average to secure a two bedroom flat in New Town and West End (up 0.8% YOY), whilst the average selling price in Morningside and Merchiston reached £383,970 for a 2 bedroom flat (up 17.6% YOY). Interestingly, highly popular in the previous quarters, three bedroom houses in Cramond, Barnton and Cammo experienced a decline in the average selling price of 5.2% YOY to £377,884.
The 2021 top property hotspot for first time buyers, Dunfermline, saw signs of demand cooling off between May and July 2022, however, the town remained one of the most affordable areas across Edinburgh, Lothian, Fife and the Borders, with the average selling price of £87,858 for a one bedroom flat and £129,296 for a two bedroom flat. Three bedroom houses, on the other hand, sold for £213,649 on average, down 22.5% compared to the same period last year.
Fewer sales and a reduction in new property listings
As we see a return to more ‘normal’ levels of activity across Edinburgh, Lothian, Fife and the Borders property sales market post pandemic, the number of properties listed for sale dropped by 15.8% and new property listings reduced by 2%.
During May-July 2022, two bedroom flats in Morningside sold in the highest volumes (up 35.3% YOY). Dunfermline saw an annual increase of 4% in the number of four bedroom houses sold, whilst three bedroom houses in this area recorded a drop of 22.5% in sales volumes.
The number of new properties coming to market was highest in Dunfermline in the past three months, with listings increasing 37.2% YOY. Corstorphine also recorded an annual rise in the volume of new property insertions, up 14%, whereas Musselburgh and Trinity experienced a drop of 23.2% and 26.8% respectively.
Buyers continue to pay above Home Report valuation across the board
Properties across Edinburgh, Lothian, Fife and the Borders achieved 108.9% of their Home Report valuations (up 3.6% YOY) in May-July 2022, as buyers continued to pay over this value to secure their dream home. This was likely compounded by the volume of properties going to a closing date, which increased by 3.5% YOY to 37.9%. Properties in East Lothian sold for the most above Home Report value, attaining 110.2% on average (up 1.7% YOY), closely followed by homes in West Fife and Kinross achieving 109.4% of their Home Report valuations (an annual increase of 4.8%). Buyers in Edinburgh paid 110.1% on average (5.7% higher than the same time in 2021) as the city continues to be a desirable place to live.
Homes going under offer in a matter of days
Strong competition across Edinburgh, Lothian, Fife and the Borders meant that homes were selling faster by one day compared to the same time last year, in just 13 days on average. Properties in West Fife and Kinross, West Lothian and Midlothian went under offer the fastest, in a median time of 12 days, whereas the quickest selling homes in Edinburgh were found in East, North and West, where the median selling time was 13 days. By property type, two bedroom flats in Leith Links and Leith proved to be in high demand, with a median selling time nine and 11 days respectively. Similarly, two bedroom flats in Newington sold in 11 days i.e. 13 days quicker than thesame time last year, which is the biggest YOY change for all properties in the capital.
Commenting on the recent property sales market data, Paul Hilton, CEO of ESPC, said: “It’s been another busy quarter for the property market, with sustained growth across many areas, including the average selling prices of property, and the amount over Home Report valuation that buyers are willing to pay.
“The latest figures show family homes, and flats in the desirable areas of Easter Road and Leith have been especially popular, and we hope to see continuing demand for homes in the city this year.
“For buyers starting out on their property journey, Leith and the surrounding neighbourhoods, and Dunfermline both offer great opportunities in terms of pricing and the volumes of available properties.”
