Increase in home sales: “Clearest indication of negative public expectations for inflation”

The rise in home sales continues to draw attention from real estate experts and economists. While real prices of homes have been declining, high nominal prices, combined with a drop in purchasing power and high-interest rates, have led to an increase in home sales. Former Chief Economist of the Central Bank and Bilkent University Faculty Member, Prof. Dr. Hakan Kara, also assessed this trend.

 “The Most Concrete Indicator”

Prof. Dr. Hakan Kara pointed out that the increase in home sales aligns with the public’s inflation expectations. “The most concrete data showing that citizens do not believe inflation will decrease sufficiently,” he said, sharing a graph illustrating October sales since 2015, which showed a significant peak in 2024.

 High Inflation Expectations Persist Among the Public

According to sectoral inflation expectations announced by the Central Bank, although the 2025 inflation forecast in the report is 21%, market participants expect 27.44% inflation in October 2025. The real sector’s expectation stands at 49.50%, while households anticipate inflation at 67.23%.

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