Knowledge is Power in a Difficult Property
Market
The problem with property statistics that are calculated by
reference to a short period of time such as a month or even a full
quarter is that they can be very easily skewed by two or three very
high selling prices or a similar number of very low prices.
The property press are always very quick to pounce upon any
perceived rises or falls in average prices as they make dramatic
headlines, without ever pointing out that the figures used can be
seriously misleading.
For that reason when you look at trends in average prices you
should always do so by reference to figures taken over a full year.
Only by looking back at prices achieved over a period of 12 months
will you begin to get an accurate idea of the strength of the
market in your area. And let's be honest, whilst we are all keen to
know how the property market is doing in general terms, what most
of us really want to know is how similar properties to our own,
located in our area, have been selling. When you come to sell your
own 2 bedroom flat in Bruntsfield it is of absolutely no relevance
that the average price of 3 bedroom detached houses in Corstorphine
has fallen by 10%, or that 1 bedroom flats in Livingston have
actually increased in value.
As an example of what I would regard as useful and relevant
information I have compiled below a table comparing average prices
for specific types of property, in specific areas, over two
separate 12 month periods.
To help you see how the market has shifted over the last three
years, and using information supplied by the ESPC through which the
vast majority of property in the Edinburgh and the Lothians is
still sold, I have compared the average price from January-December
2008 (2008) with the average price for the same
type of property over the 12 month period to 30th June
2011 (2011)
Let's look first at comparable prices for 2 bedroom
flats in Bruntsfield, Comely Bank and Leith.
Bruntsfield
2008 - 48 sales recorded - average
price
£255,380
2011 - 44
"
"
-
"
"
£246,759 - a fall of 3.5%
Leith
2008 - 130 sales recorded - average
price £158,012
2011 - 84
"
"
"
"
£142,175 - a fall of 10%
Comely Bank
2008 - 28 sales recorded - average
price
£273,519
2011 - 33
"
"
"
"
£229,154 - a fall of 17%
Looking next at 3 bedroom houses in Buckstone,
Corstorphine and Duddingston
Buckstone
2008 - 16 sales recorded - average
price £246,299
2011 - 8
"
"
"
"
£237,038 - a fall of 4%
Corstorphine
2008 - 69 sales recorded - average
price £290,227
2011 - 58
"
"
"
"
£262,201 - a fall of 10%
Duddingston
2008 - 24 sales recorded - average
price £255,856
2011 - 19
"
"
"
"
£261,211 - an increase of 2%
This is the sort of information that will help you to make a
properly informed decision about whether to put your property on
the market, the sort of information that will allow you, as a
buyer, to pitch your offer at the right sort of level and the sort
of information that is available to you if you know where to look
for it.
So, do your research and don't allow yourself to be fooled by
irresponsible reporting of trends in the property market. Knowledge
is power and the better informed you are at the outset, the better
results you should achieve.
This is the sort of detailed
information that Hunters Residential can make available to you. If
you would like to know more or if you have any questions about
buying and selling property then contact me, Wilson Hunter, Partner
in charge of the Residential Department at the offices of Hunters
Residential, 76-80 Morningside Road, Edinburgh EH10 4BY. My contact
number there is 0131-447-4747 and my e-mail address
wilson.hunter@huntersresidential.co.uk
