Stock levels continue to rise from previous low levels
After the desperately low stock levels on the Edinburgh residential sales market over last winter, numbers of properties for sale have progressively climbed in 2022 and are now brushing the levels seen in August/September 2021, although some way off the dizzy heights of Aug/Sep 2020 following the COVID bounce.
Consistent number of sales agreed over the past 18 months
Monthly sales agreed has remained consistent over the last 18 months, aside from the expected winter dip last Nov/Dec. With stock levels rising, and agreed sales remaining the same this will result in more properties being added to the market. This will ultimately lead to more choice for buyers.
Prices still achieved over valuation but expected to cool off over the winter
While many properties are still selling for prices over home report valuations, we expect this to change gradually over the winter as the market starts to cool.
Cost of living and increased mortgage rates also likely to bite over the winter months
Nationwide reported that UK house growth has dropped slightly from 11% in July to 10% in August; a sign that the housing market is losing some momentum, however relatively speaking that drop is pretty modest. This may be because rising cost of living is hitting those on lower incomes first and will take a little longer to impact higher income households, which make up a large part of the housing market. It’s most likely that the squeeze of increased cost of living and rising mortgage rates are going to filter through into the housing market in 2023.