December 6, 2022

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Home prices are falling.  The correction in the real estate market becomes a reality - Real Estate

Home prices are falling. The correction in the real estate market becomes a reality – Real Estate

Average prices for apartments in the secondary market – June 2022

Photo: Editors Morizon.pl / Morizon.pl

The housing price index is declining

According to the latest analysis of the offers of apartments for sale on Morizon.pl and Gratka.pl, the market has entered a correction stage. For the second month in a row The housing price index – an indicator of price trends in the Polish housing market – is declining. According to the latest prepared data Based on the prices of the apartments for sale Its value in June was 1481.9 points. It was down 16.1 points, or 1 percent. Less than the result of April this year. Although a comparison between the last reading and the previous year shows an increase of 12%, it is already clear that its pace is clearly lower than the annual rate of inflation. According to data published by the Central Statistical Office, the proportion was 15.6 percent.

Analysis of prices for apartments for sale in June shows that the supply side is already responding to weak demand caused by limited availability of loans. Owners of premises for sale began to reduce their price expectations. This phenomenon can be observed in the case of offers presented to the market, as well as those that have been on the market for a long time.

More opportunity to seize opportunities

Correction of bid prices can be observed not only in Warsaw and Krakow, but also in Gdansk, Lublin and Szczecin. Among the ten largest Polish cities, in 7 the rates recorded in June were lower than in April. And despite the fact that these aren’t significant declines, given the steady increases in home prices for years, as well as rising inflation, they do form enough basis to say that real housing is starting to decline. The combination of an increasing supply (while supply continues to decrease) and a decrease in demand indicates this Apartments will belong to a narrow group of goods whose prices will not rise in the near future.

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This means that customers, especially monetary customers, who continue to search for the perfect M and are determined to buy it, will be in a favorable position. They will have more offers to choose from, a greater chance of “looking for” an opportunity – whether it is related to the price or resulting, for example, from a rare appearance of offers from a particular market position – and a better negotiating position when determining the final terms of the transaction.