THE EDINBURGH SALES MARKET QUIETENS DOWN FOR THE WINTER, BUT REASONS TO BE CHEERFUL GOING INTO 2024
As we move into traditionally the quietest period of the year, the number of properties for sale in the Edinburgh market has started to drop.
This is a consequence of the number of monthly sales agreed remaining steady while less properties have been added to the market. This is most likely because many potential sellers are holding off listing their home for sale until the new year. We’ve also experienced a number of sellers pulling their property from the market for the remainder of the year with a view to relaunching in January.
One of the key reasons properties have continued to sell through such a turbulent market, caused by interest rate rises, is because of sellers willingness to reduce the asking price on properties. Every month this year, apart from May, we’ve seen an increase in price reductions from the month before. More than 400 homes on the market in Edinburgh had their price reduced in both October and November; 10 times the number of price reductions that occurred in the Edinburgh sales market 2 years ago.
WHAT IS THE OUTLOOK FOR 2024?
It’s encouraging that even with such difficult market conditions in 2023, the market has continued to function and property sales have held up.
Sellers and buyers appear to be more tuned into Bank of England announcements than they have been for many years and it certainly has a profound impact on people’s confidence relating to house moves due to how closely linked the base rate is to individuals’ mortgage rates. In recent months we’ve seen some relative stability with interest rates being held, inflation levels falling back and potentially more affordable mortgage rates in store in 2024.
We expect buyers and sellers to start next year with a more positive outlook and for more buyers to enter the market which should give sellers more confidence to list their home for sale. Stock levels will remain higher than we’ve seen for some years, so it will continue to be a buyers’ market with offers close to valuation, however properties will sell, giving buyers and sellers reason to be optimistic about making their move in 2024.