The New Normal
By Brian Smith, Partner
Recent figures from Lloyds TSB Scotland confirm our view that the residential market in Edinburgh and East Lothian has probably settled down at its current level.
Post the 2008 crash volumes fell, according to Registers of Scotland statistics, to about 40% of previous levels. Although there has been a slight recover in that, the number of sales remains fairly constant at about 50% of 2007 levels.
So far as prices are concerned, we have all read the apparently contradictory reports which have come out from various organisations. The reality is that whilst there may be seasonal, geographical or market sector fluctuations, values seem to be going nowhere fast at present.
What everyone needs to come to terms with is that this is the New Normal. It is unlikely that prices will fall significantly but it seems equally unrealistic to expect any “recovery” to previous market conditions in the foreseeable future.
People need to move home for many reasons and this may be a very good time to do so for those who can. Prices are relatively stable, interest rates low and likely to remain so and issues regarding job security may now have receded for many.
The start of the year seems to have produced an increase in the number of buyers - or perhaps they have just come to the market ahead of properties coming on. This has led to a few more closing dates than we have been used to in the recent past. As spring approaches however more property will come to the market giving buyers a little more choice. So if you are a potential seller you should speak to us now to beat the rush and catch that increased supply of buyers!
