September Property Market Highlights
After reaching a national level average house price of over 200k, the Scottish property market has continued to rise.
Property prices could fall further if the government fails to implement policies to ease the housing affordability (cost-of-living) crisis we are currently facing.
Buyers continue to buy homes for well above their current market value and home report estimations.
Local markets are seeing homes sell faster than they did last year.
Scotland’s housing market continues to climb at an impressive rate.
Since the start of the coronavirus outbreak, the average house price in Scotland rose by 20%. Prices have been growing steadily since 2016, reaching a new peak in June 2022 when the average price of a house in Scotland passed £200k for the first time.
The market has experienced modest gains from May to July this year, but buyers are most popular in Edinburgh, the Lothians, and Fife. Prices across all these regions have risen by an average of 4% to £288,992 per annum, says the latest figures from trusted real estate sources.
In the last quarter, the property market has seen continued house price growth, growth in the house selling prices but also growth in the amount of money that home buyers are able and prepared to pay over the valuation they are getting from documents such as the home report.
Despite the predictions that the property market increases will soon halt or fall during concerns about rising cost-of-living pressures yet to be seen in reality.
There are signs that prices may not fall as quickly as some had expected.
Despite the fact that the Scottish property market has continued to flourish, predictions that its progress might soon be cut down are growing, with claims that prices could deteriorate for the next year.
With millions of Scots bracing themselves for a tough winter, Zoopla predicts the UK property sector will be hit hard by rising costs of living by the end of 2022 and the highs we have seen in the housing market will start to fall.
Higher mortgage rates are likely to put further pressure on house prices as more buyers struggle to afford them and may force people into renting homes instead of buying. However, Zoopla suggests that our shifting habits may help this prediction as our work habits (working remotely) since the pandemic may continue to shift us away from big cities and towards cheaper, more affordable living in smaller towns and rural areas. For some people, the increasing cost of living could be boosting their urge to move out of their current housing to save on bills and high-cost living in big cities.
Despite the fact that the costs of living may challenge the affordability of a property for some buyers, the imbalances between buyer demand and the availability of new homes remain.
The same supply and levels of demand issue have assisted in slingshot Scottish house prices beyond the £200,000 price range this is the highest the average cost for a home in Scotland has ever been.
Home buyers continue to purchase properties at prices far above their current market values and estimates.
Scottish property owners continue to be willing to pay above Home Report valuations for their homes, with most houses selling at 107.8 per cent of their Home Report value. East Lothian had the highest percentage increase in sales price, with buyers paying an avgage of 10% over the home report estimation. Dunfermline, West Fife and Kinross have also been paying well over the home report value. Edinburgh has also been overspending with homes going for 108.9% over the valuations from the home report.
Home sales are increasing at an accelerated rate compared to last year.
And it doesn’t look like slowing down anytime soon.
In a recent property report, real estate agents say that housing in local Scottish regions is experiencing less time on the open market. Homes in most parts of the country are selling in under 2 weeks.
Properties were sold even quicker than that in areas such as Fife and Kinross, and the Lothians, with an average selling time of just 12 days.
The most popular homes for sale in Edinburgh were located in the east, north and west of the city, with an average time on the open house of just 13 days. Two-bedroom apartments went quickly in the Leith and Leith links area, selling between just 9 and 11 days.
September Property Market Update 2022 Conclusion
Buying and selling property in today’s current market can be very risky, it can work massively in your favour or it could go horribly against you in you’re not careful. It’s also a very tough market for first-time buyers to get themselves on the property ladder, mortgage interest rates and mortgage lending is like a rollercoaster in 2022.
If you’re new to the property ladder or haven’t bought or sold a home in years, it can be intimidating, if you are worried about buying, selling, or investing during this market or would just like more information and advice, Cox & Co are here to assist you, and we can help you no matter where you are on your property journey. We can answer any questions you may have about property investment, property sourcing, mortgages, or lettings and property management. If you would like to know more about any of our services, please get in touch, we’d love to hear from you!
