The volume of properties advertised for sale in cities north of the Border has fallen by up to 52 per cent since the recent peak in autumn 2020, according to DJ Alexander, which says it is the largest estate and letting agent in Scotland.
It found that Dundee has had the largest percentage fall, with 52 per cent fewer properties advertised in August 2022 compared to November 2020, falling to 181, followed by Edinburgh, which fell 45 per cent to 1,302, while Aberdeen had the lowest drop, down by just 16 per cent over the same period to reach 2,625.
DJ Alexander chief executive and Scotsman columnist David Alexander said: “It is clear that the market is running out of steam although, ironically, this significant reduction in volumes could temporarily maintain prices for a few more months as more buyers seek fewer properties.
“The peak in volumes in the autumn of 2020 was really quite marked and seems to have been a reaction to the initial lockdown driven by working from home, historically low interest rates, and a desire to find the ideal property.
“However, it is clear that we are now facing a downturn in the market and prices are likely to fall in the coming months... the medium to long-term trajectory is almost certainly downward… I would expect a dip in the next month or so followed by a year or so of stability until the outlook for the economy becomes clearer.”