The Herald - The Herald Magazine
THE VOICE OF PROPERTY
PROPERTY stock levels have plummeted in cities and towns across Scotland, according to analysis of the latest data by leading property firm DJ Alexander, part of the Lomond Group, the largest lettings and estate agency in Scotland.
It found the number of properties advertised for sale has fallen by up to 70 per cent from the most recent peak recorded in November 2020. The volume of properties available fell across the whole of Scotland down 70 per cent in Dundee over this period; 63 per cent in Dumfries; 58 per cent in Dunfermline; 56 per cent in Perth; 53 per cent in Glasgow; 51 per cent in Stirling; 49 per cent in Edinburgh and Paisley; 42 per cent in Inverness; and 18 per cent in Aberdeen.
David Alexander, CEO of DJ Alexander Scotland, comments: “Many people are struggling to understand why property prices have risen so rapidly and continue to remain buoyant. The simple answer is supply and demand, with thousands fewer properties on the market compared to just 18 months ago.
“That this is happening across Scotland from major urban areas to smaller towns, tells you the market is desperately short of supply, which in turn, is causing bidding wars for the properties that do come onto the market.”
He concludes: “We now have the property market going in two different directions: interest rate rises, the cost-of-living crisis, and rocketing utility prices, are suppressing buyer interest - at the same time extremely low levels of stock are inflating demand. It is an unusual combination resulting in a contradictory market that is both booming and cooling at the same time.”
PROPERTY prices in Edinburgh, the Lothians, Fife, and the Scottish Borders continue to climb, with ESPC’s May House Price Report highlighting the average selling price between March and May rose five per cent annually, to £274,309, while sales volumes dropped by 17.3 per cent compared to the same period in 2021, and new listings were six per cent lower over the same period. Data also reveals 35.7 per cent of properties went to a closing date; on average, homes attained 107 per cent of Home Report Valuations; and the median time to go under offer was 14 days.