More houses sold but prices still ‘variable’

THERE are signs of life in the housing market, with a 12 per cent increase in the number of homes being sold across the Lothians and Fife, according to a new report from ESPC.

The average price of a house in the capital is now £209,065 following a 1 per cent rise from a year ago.

However, the trend in house prices is still variable, with substantial suburban homes rising in price while one- and two-bedroom starter homes struggle to find buyers.

Homes in Leith and Easter Road suffered the greatest loss in value – with one-bedroom homes in the area selling for an average of £106,600 compared to £125,214 a year ago – a fall of 14.9 per cent

Two-bedroom flats in Stockbridge and Comely Bank also showed a fall in average prices – going from £224,430 a year ago to £207,668 over the last quarter – a fall of 7.5 per cent.

David Marshall, business analyst with ESPC, said the tough market conditions meant many buyers were getting a bargain. “Sellers whose homes have been on the market for a while are now showing a willingness to accept a lower offer, where previously they had often been holding out until they received a figure in line with their valuation.

“One in five homes sold over the last three months was secured for more than 10 per cent below their home report valuation, with most of these properties being on the market for more than four months.”

“At the same time, sellers today are being more realistic in setting their asking price and the result is that we’ve seen a rise in the number of sales being agreed.

“Competition amongst sellers remains high, so we don’t expect to see properties rise over the course of the year but the number of properties being bought and sold should continue to show improvement, which will be good news for those looking to move home.”