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Real estate market enters blockage due to discrepancy between buyers' budgets, prices sellers claim
The real estate market entered blockage against the background of a major discrepancy between the buyers' budgets and the ever soaring prices sellers claim, reads a Temple House release sent on Monday.
Paradoxically, against the background of the world economic and financial downturn and the ever harsher crediting terms, the owners of the flats for sale are ever more inflexible in negotiations. Moreover, they have asked considerably higher prices, during the latest months. Whereas the buyers have been waiting for the dwellings to get cheaper, ever more owners hope to sell their flats of blocks built during the 70ies and the 80ies, for fabulous prices and therefore such apartments got averagely with 10-15 percent more expensive compared to the first half of 2012, Temple House consultants opine.
On the other hand, the market also offers cheaper flats sold by owners who are in a hurry, or whom circumstances make to be hasty.
Nevertheless, the real estate consultants warn about the fact that, at present, against the background of the general euphoria generated by the First Home Programme, the famous real estate ‘bubble' gets swollen, again, and the main trend being the gradual rise in the price for homes, a discrepancy occurs between the prices the owners ask and the real market value of the dwellings, but the situation blocks the market and dwindles the number of the real estate transactions that are few, anyway.
Although the market's engine could rely on the First Home, the programme's initial enthusiasm starts fading away due to the banks' ever tougher crediting terms, so that ever fewer clients get a loan and it is much less,' Temple House experts say.
They opine that a solution to unblock the market is the relaxation of the crediting terms as well as the return to prices meeting the current market demands.