Smaller properties in Edinburgh are experiencing the biggest decreases in value in today's tough housing market according to the latest house price statistics from the ESPC for November 2012 to January 2013.
The average house price in Edinburgh between November and January stood at £202,275 – down 4.6% annually. The decrease marked the sixth consecutive period during which Edinburgh house prices have fallen on an annual basis.
The solicitor organisation said that trends were broadly consistent across the city, with prices lower than they were a year ago.
However, Gorgie and Dalry saw a decrease of 6.0% taking the average selling price of a one-bedroom flat to £86,025, the first time this figure had dipped below £90,000 since 2005.
“We’ve seen a rise in buyer activity over the last year and the number of homes selling is at its highest level since 2008," said David Marshall, business analyst with ESPC.
"In most cases buyers are looking to negotiate lower selling prices and sellers are showing a willingness to accommodate them. As a result, particularly in smaller properties, we’re seeing more homes selling, but at lower prices."
He added: “Roughly four out of five homes are being bought below their Home Report valuation at present, with almost one in four selling for more than 10% below valuation."
“Whereas you might have seen sellers a couple of years ago testing the water by setting their asking price above the valuation we’re now seeing much more realism on this front. Just 1% of properties brought to the market over the last three months had an asking price in excess of the original valuation.”
Outside Edinburgh there were some sharp movements in average house prices.
David Marshall puts the volatility in average home prices down to the relatively small numbers of sales, as typically happens over the winter.
“In West Lothian, for example the 29.3% increase this year follows a 24.0% decrease a year ago so prices are simply back in line with levels seen two years ago. Similarly, the 9.2% increase in East Lothian comes on the back of a 6.1% decrease last year. In neither case are such sharp movements reflective of long run trends,” he said.