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House Price Report indicates upturn in Scottish housing market

The property market in East Central Scotland saw a significant upturn in activity during the second quarter of 2013 the latest ESPC House Price Report shows.

House sales across Edinburgh, the Lothians and Fife rose by 13.4% annually and by 26.1% from levels seen between April and June in 2011.

Overall, the number of homes sold was at its highest level for five years.   There was also a notable rise in activity amongst sellers, with the number of homes coming onto the market between April and June rising by 9.7% on annually.

The improvement in activity has allowed sellers coming to the market this year to enjoy greater success in finding buyers. Seventeen per cent of properties brought to the market in June this year were under offer by the end of the month – up from 12% in June last year.

Whilst the number of homes selling has risen, the average house price in most areas is lower than was the case last year. In Edinburgh, for example, the average selling price of a property in the three months to June was £216,006, down from £226,367 last year – an annual fall of 4.6%   East Lothian saw a sharper fall in the average price, with a 13.7% decline bringing the average price in the area to £195,899.

The decrease in the average was largely driven by a rise in the proportion of smaller properties selling. One bedroom homes accounted for 11.1% of sales in the second quarter this year compared to just 5.7% of all homes sold in the area during the second quarter of 2012.

David Marshall, business analyst with ESPC said:   “It is encouraging to see early indication that the market is starting to recover. Although early days, we are seeing signs that sales are increasing which is bringing more home to market.

“For the majority of people house prices are relative. If the value of our current home rises, it means the price we’ll have to pay for our next home will also be higher and vice versa. Ultimately what matters to most of us is that when we’re looking to move, we can find someone to buy our current property and a new home that meets our needs, so it’s encouraging to see that activity among buyers and sellers is on the increase.

“When it comes to negotiating on price, buyers are still enjoying some success but there has been a slight increase in the number of sales where the original Home Report valuation is achieved – up from 31.5% last year to 34.4% this year.”

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