The average price of Edinburgh fell by 4.6% in the third quarter of 2010 after a small upturn during the first six months of the year. The New Town/West End area proved most resilient, with the biggest falls seen out-with the city centre.
Property values above £2m have fallen more than those in lower price bands, making now a good time to upsize. Sensible pricing attracts more viewings, leads to more offers and means guide prices are more likely to be met or even exceeded.
Half of our prime Edinburgh house sales this year achieved more than the asking price.
Matthew Munro, head of Edinburgh city sales, Knight Frank, commented:
“The fact that values have fallen by 4.6% this quarter and by 4.7% over the past 12 months supports the advice that we have been giving vendors for months - realistic pricing is essential to attract viewings. Buyers have become increasingly price sensitive and they simply will not view properties they consider to be over-priced.
“Where properties have been on the market for some time with little interest, vendors would be wise to consider reducing the asking price to trigger viewings. When clients have done this, the impact on enquiries has been significant. Offers made are then more likely to meet, and even exceed, the asking price. We secured clients more than the asking price on 50% of our prime Edinburgh house sales so far this year.
“We take an average of six weeks to sell property in Edinburgh (from the day it goes on the market to the day an exchange is agreed), and sold three properties within four weeks recently. The houses - one on Church Hill, one on Dick Place and the other on Magdala Crescent - sold quickly because they were priced sensibly from the outset.
“For owners of Edinburgh properties priced below £2m, now is a great time to upsize, as property values above this have fallen more than those in the lower price bands, meaning buyers require less money to upgrade.
“The imminent VAT increase (in January) and stamp duty hike for homes costing £1m and above to 5% (from April 2011) will make buying more expensive for many prospective purchasers next year, making now an opportune time to buy."
