Is Edinburgh’s Property Market Swinging Back Towards Buyers?
For about two decades, the Edinburgh real estate market seemed to defy gravity and become the first bubble to grow steadily without ever bursting. This has been greatly influenced by the growing economy time to time. In most areas of the capital, real estate prices have risen by at least 5% over the previous year, and significantly more in the most popular places, especially in the larger properties of Bruntsfield, New Town, Stockbridge, Grange, Comely Bank, and Merchiston.
Of course, that ended with the 2007 financial crash, although 18 months ago, warning signs threatened to cause trouble. Even in this case, the “bubble” did not collapse in Edinburgh, but it fell sharply and almost 10 years before the market resumed.
So back to “status quo” with a new period of 20 years of real estate price inflation in the immediate horizon? It will be hard because it will be even harder for first time buyers, and cannot see the cost of housing going up regularly before salary increases. However, we are likely to see some year-over-year price growth, with one exception.
When homeownership began to gain popularity about a century ago, home prices were determined by two factors – the location and size of the property – and ranged in the following categories: lower and upper entrance; medium, medium, and high average; and finally at the top. Since then, prices in each category have increased proportionally across the UK, but they are now changing in Scotland.
Some people are curious about the property transaction tax, but it is really impossible to underestimate the damages inflicted on the market by the draconian interest rates that affect the main properties. This brings us back to our question, Is the Edinburgh property market swinging back towards buyers? Indeed, Edinburgh will probably be more affected by this tax, as first-class real estate accounts for a larger share of the overall market than elsewhere in Scotland.
As a result, sales that affect such properties are drying up, with homeowners selling only when they really need it, for example, to start a new job in another part of the country. Otherwise, they will make internal improvements, create extensions or simply take their space. Ironically, this has led to higher prices on the high end simply because very few of them are available and buyers, even if they are heavily discounted, have to face the competition. In other words, the market has become a healthy body, but without a head.
This recovery differs from similar periods in the past in that the lower and middle sections will be dynamic, but sales will be leading the downtrend. This difficult situation for professional property finder services is aggravated by investable buyers who avoid higher and upper housing and invest their money in two or three less expensive properties.
The only silver base of this huge cloud is the reduction in the price difference between medium and high-end real estate. Theoretically, this should place buyers, who have the policy of “trading” continuously with increasing personal income, on the highest step of the career ladder. But do you want that in view of the draconian tax rates mentioned above?Real Estate Agents, Real Estate Services, Real Estate Tips