According to the Registers of Scotland the number of homes sold North of the Border between January and March has fallen by a dramatic 57% compared to the same period last year. There has been a continual decline in property sales as the previous quarter saw a 38% decrease in sales compared to the same period last year as well. This trend is alarming for homeowners throughout Scotland, especially individuals looking to sell their property in the current economic environment.

In Scotland, house prices have fallen by around 6.6% between Q1 of 2008 to Q1 of 2009. On a brighter note, this can be deemed as favourable when compared with the rest of the country. According to the Nationwide Housing Index, the annual housing change has been in the region of 15% year on year. However, Scotland still maintains lower than average house prices compared to the rest of Britain. The average home in Britain now costs around £152,000 compared to £140,000 in Scotland.

Even Scotland’s largest real estate market, its capital city, Edinburgh, seems to have taken a big hit. According to the City of Edinburgh local authority sales have decreased dramatically by over 60% between Q1 of 2009 compared to Q1 of 2008. Interestingly, it is detached houses that have showed the largest declines while terraced homes have been more resilient in the turbulent marketplace.

On a positive note, there have been some areas of Scotland that have seen a rise in average property prices over the last year these include Angus, Falkirk and the Orkney Islands.