ESPCs latest house price figures for November 2012 to January 2013, show that smaller properties are experiencing greater decreases in value, reflecting the tougher conditions for sellers at this end of the market.
In Gorgie/Dalry the home marketing company say that the average price of one bedroom flats has fallen below £90,000 for the first time since 2005, and they claim that while more houses are selling in most areas, prices in general have decreased over the last year.
The average house price in Edinburgh between November and January stood at £202,275 – down 4.6% annually. The decrease marked the sixth consecutive period during which house prices in the Capital had fallen on an annual basis.
David Marshall, business analyst with ESPC, commented:-“We’ve seen a rise in buyer activity over the last year and the number of homes selling is at its highest level since 2008. In most cases buyers are looking to negotiate lower selling prices and sellers are showing a willingness to accommodate them. As a result, particularly in smaller properties, we’re seeing more homes selling, but at lower prices.
“Roughly four out of five homes are being bought below their Home Report valuation at present, with almost one in four selling for more than 10% below valuation. Whereas you might have seen sellers a couple of years ago testing the water by setting their asking price above the valuation we’re now seeing much more realism on this front. Just 1% of properties brought to the market over the last three months had an asking price in excess of the original valuation.”
Outside Edinburgh ESPC say there were some sharp movements in average house price which was the result of lower sales volumes typically associated with the winter period causing greater volatility in figures.
David Marshall explained:-“Over the last three months, we have seen a higher number of sales than we usually have at this time of year but historically there is always a seasonal dip in activity over the winter months. When sales volumes are lower you’ll see more volatility in average house prices as it takes a relatively small number of sales to skew figures. In West Lothian, for example the 29.3% increase this year follows a 24.0% decrease a year ago so prices are simply back in line with levels seen two years ago. Similarly, the 9.2% increase in East Lothian comes on the back of a 6.1% decrease last year. In neither case are such sharp movements reflective of long run trends.”
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