The number of properties advertised for sale in Scotland has nearly halved over the last two years according to a leading firm.

DJ Alexander Ltd, the largest estate and letting agents in Scotland, found that the volume of properties advertised for sale in Scotland’s cities has fallen between 16% and 52% since the recent peak in the Autumn of 2020.

Dundee has had the largest fall with 52% fewer properties advertised in August 2022 compared to November 2020 while Aberdeen had the lowest drop decreasing by just 16% over the same period.

David Alexander, chief executive of DJ Alexander Ltd, explained: “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. This level of volumes hadn’t been seen on the market since July 2016 and the fact that this has been matched by record price rises shows how much demand has been exceeding supply over the last two years.”

Alexander continued: “However, it is clear that we are now facing a downturn in the market and prices are likely to fall in the coming months. Not substantially but certainly we will not be experiencing anything like the lift in prices that we have witnessed over the last two years. This is a good thing as markets cannot sustain long-term continuous rises without the possibility of a future crash.

“With the financially depressing pressures of the cost-of-living crisis, rocketing fuel prices, utility increases, and the potential for the economy to slip into recession it is impossible for this not to have an impact on the housing market.

“We are already seeing prices stabilising and falling back slightly and, while the fall in volumes may aid further sales in the short term, the medium to long-term trajectory is almost certainly downward. How far prices slip is unknown, but 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.”

Number of properties advertised for sale

Location                            November 2020                             August 2022                     difference

Dundee                             378                                                   181                                    -52%

Edinburgh                        2357                                                 1302                                  -45%

Inverness                          234                                                   133                                    -43%

Glasgow                            2737                                                 1816                                  -34

Perth                                 219                                                   147                                    -33%

Aberdeen                         3120                                                 2625                                  -16%