The average selling price for properties across Edinburgh, the Lothians, Fife, and the Borders decreased by 4.4% to £271,106 during November 2023 to January 2024, according to the latest ESPC House Price Report.
The market remained steady during this traditionally quieter period, recording a small but positive rise of 2.8% in property sales volumes.
Dunfermline continued to be popular with buyers, and secured the highest volumes of property sales, but levels were down 10.5% on November 2022 to January 2023.
Leith was the second most popular place to buy property, as sales volumes rose 17.8% year-on-year during this period.
However, this rise was somewhat overshadowed by the rising popularity of Corstorphine, where sales volumes rose 38.3% annually.
Two-bedroom flats in Leith were the biggest sellers, with sales volumes for this property type up 16.2% year-on-year.
This was closely followed by one-bed flats in the same location; the sales volume of this property type increased by 33.3%, hinting at an influx of new buyers in the market looking to purchase for the first time.
Outside the capital, three-bedroom houses in Dunfermline were the biggest sellers, although figures were much steadier in comparison; sales volumes for this property type rose 8.3% annually.
West Fife & Kinross and West Lothian both saw a boost in their region’s property prices.
In West Fife & Kinross, the average property selling price was £210,454 (a rise of 3.5% annually), while in West Lothian, the average price rose significantly, up 28.6% year-on-year to £239,424.
In Edinburgh, property prices declined 4.2%, taking the average to £289,363, however there has been a substantial boost to the volume of smaller, cheaper properties sold in the city, which could skew the overall figures.
The South West of the city enjoyed the biggest increase in property prices throughout the capital, with property selling prices here rising 10.7% to £316,822.
By contrast, the North West of Edinburgh saw the biggest decline, with average selling prices declining 19.8% to £247,164.
Paul Hilton, CEO of ESPC, said: “November-January is typically a much quieter time for the property market, however, it’s clear to see that this wasn’t the case this time.
“The market appears fairly steady overall, and all the signs point to increasing numbers of first-time buyers coming into the market, which is very welcome news after a very difficult period financially for many in their position.
“There has been a significant increase in the available options for buyers, especially those looking for smaller flats in Edinburgh hotspots, perhaps due to rising numbers of landlords deciding to exit the rental market and offload their properties in response to ongoing legislation around rental rates, leading to an influx of first-time buyer-friendly homes coming on to the market.
“The average selling price has declined overall, but as with our previous report, if we look past the headline figures, we can clearly see reasons for this that should reassure homeowners that there hasn’t been a wide-ranging decline in property values.”
He added: “Our latest report also indicates an increase in seller confidence in the market, which is again welcome news to help reinvigorate proceedings.
“There’s been a healthy increase in property listings, which is great news for buyers too.
“We can see the effects of rising numbers of properties coming on to the market – fewer closing dates and lower overbids are all examples of this – but it’s important to remember that this isn’t negative news for sellers, who can also reap the benefits in their onward property purchases.
“An increase in the volume of properties listed for offers over, rather than a fixed price, also demonstrates confidence and optimism in the market once again.
“If you’re thinking of buying or selling a property in Edinburgh, the Lothians, Fife, or the Borders, contact your local ESPC solicitor estate agent today.”
