Scottish market surprisingly buoyant
The number of properties being advertised for sale is increasing by as much as 83% in parts of Scotland, suggesting the market is busy despite rising mortgage rates, research from estate agent DJ Alexander shows.
In August the number of homes for sale in Inverness have risen by 83% year-on-year, while there’s also been strong increases in Dundee (81%), Edinburgh (45%), Perth (22%) and Glasgow (17%). Aberdeen (-5%) goes against the general trend.
Such has been the annual increase, the August figure is in the top four by volume of any month in the past 30 months.
David Alexander, chief executive of DJ Alexander Ltd, explained: “Despite interest rates increasing 14 times since December 2021 the number of properties advertised for sale in Scotland continues to rise.
“Year-on-year our major cities are reporting double digit growth and, in the case of Inverness and Dundee, just shy of 100% more properties for sale than one year ago.”
“With an interest rate policy designed to slow down inflation by reducing demand in sectors like housing we are still seeing an overwhelming desire on the part of Scottish homeowners to keep on buying and selling.”
Detached and semi-detached properties are being advertised more than twice as much as a year ago.
Edinburgh is a hotspot, with triple digit growth in volumes and prices continuing to rise across the city and specifically among larger homes.
In Dundee the figure for detached homes is 128% higher, though it’s from a smaller base of sales.
Alexander added: “There is little doubt that prices are softening across the whole market but by a small margin compared to the large increases experienced over the last three and a half years.
“That the number of properties advertised for sale remains so positive is testament to the faith of homebuyers in Scotland who clearly believe that any downturn in the market will be temporary, and it is not acting as a hindrance to their purchasing desires.
“There must be a calmer period in the housing market at some point but with strong employment levels, very high wage rises filtering through the economy, and an underlying faith in the strength of the housing market it seems unlikely that Scotland will experience any kind of substantial fall in the next year or so.”