The number of properties advertised for sale in Scotland has increased by 75% in some parts of the country as vendors fear prices may start to drop, an agent suggests.
Analysis by the Lomond Group-backed DJ Alexander has found that the number of properties advertised for sale in February has increased by 75% annually in Glasgow, up 37% in Perth, 34% in Edinburgh, 28% in Dundee, is 25% up in Inverness and 10% down in Aberdeen.
The number of properties for sale peaked in December 2022 but remains substantially higher than last year with the greatest increase in volumes among detached properties with a year-on-year increase of 253% in Glasgow, according to the research.
The number of detached properties advertised for sale increased in most cities in Scotland increasing by 148% in Edinburgh, up 124% in Dundee and by 114% in Perth, with Aberdeen and Inverness bucking the trend with relatively small increases in numbers, DJ Alexander said.
David Alexander, chief executive of DJ Alexander, said: “This may seem surprising that at a time when many are predicting a substantial downturn in the market that there should be such an increase in the number of properties advertised. This could be precisely because many sellers are expecting price falls and are trying to sell before this occurs.
“It could also be people who are anticipating a hike in their mortgage payments and are selling before higher payments impact upon them.
“Of course, more properties advertised for sale at any one time usually results in lower prices as supply exceeds demand, but we are finding that the market remains very buoyant despite continued negative forecasts from the doom-mongers.”
Alexander said he isn’t expecting a drastic fall in house prices due to record levels of employment and signs that inflation is slowing and the projected recessions won’t be as severe as expected.
He added: “I do still believe that a price correction will occur, and the most recent predictions have been that there may be an 8- 10% fall in prices.
“Given that average prices in Scotland have risen by 27.1% from March 2020 to November 2022 this is barely a correction.
“This level of price drop would return average prices to June 2021.
“The key message is not to panic, if you were thinking of buying or selling anyway then simply get advice and check out the market.
“The worst thing to do with property is to try and pre-empt or second guess the future direction of prices. When you try to outthink the property market it almost always ends badly. Much better to take a step back, reflect on your circumstances, and then look at whether now is the time to move or to stay put.”