Shift in market conditions is good news, says ELPG
6 Jul 07
Report reveals "a less frenzied property market" as supply catches up with demand
There is new evidence that the numbers of properties being listed for sale are finally catching up with demand – resulting in a less frenzied property market.
Property experts are highlighting a shift in market conditions from those experienced in late 2006 and the early months of 2007, which saw demand for property outstrip supply, causing frustration for buyers and a significant rise in prices.
The trend is revealed by the market report produced by the ELPG group of property solicitors - Drummond Miller, Leslie Deans & Co, Hunters (part of Gillespie Macandrew), The Lints Partnership, Neilsons, MacMac Residential and Warners.
The report, which provides instant analysis of the property market in Edinburgh and the Lothians, reveals that there are now twice as many homes on the market through member firms as there were at the start of the year, 759 by 21 May as against 383 in early January. At the same time, the numbers of properties being sold remained high, hitting a peak of 130 in the last week of May.
Andrew Diamond, residential conveyancing director at Mac Mac Residential, said: “While January tends to see a relatively low volume of property on the market, this year was particularly problematic because there were so many sales at the end of 2006, leading to a situation where there simply weren’t nearly enough properties on the market to meet purchaser demand."
Explaining that it had taken the market some time to settle down again, he added: “What the ELPG Market Report shows is that the supply of property has increased significantly since the early part of the year and is now relatively stable. ELPG solicitor firms are currently listing a good number of new properties each week, and selling approximately the same number. This new evidence is a welcome piece of good news.”