Exorbitant price rally in home sales stuck in demand!

Experts say it seems that the decline in homes sales in July will be reflected in August sales, as well. According to the sector authorities, the contraction is due to the excessive increase in prices, the reduction of loans by state-owned banks and the withdrawal of foreign investors from the market.

The high demand for housing for sale in Turkey declined in July. A similar picture is expected to be experienced in housing sales data to be announced for August. Due to the decreasing demand, the sales periods in the housing sector has extended from days to 2 to 3 months, leading to an increase in the number of houses waiting for sale.

According to the data contained from a web portal, the period of publication of real estate supplies in the category of housing for sale has extended.

According to the sector, the contraction in demand is due to the fact that prices have risen too much, public banks have turned off the credit taps and foreigners have withdrawn from the market.

CASH MONEY TRANSFERRED TO KKM

Evaluating the contraction in the sector, a professional said that there had been a contraction in the purchasing side for two months, which led to an increase in the number of pending homes for sale. Same person explained the reasons as follows: “Because foreigners withdrew from the foreign market. 400 thousand dollars and antipathy to foreigners in Turkey were effective in this. In addition, homeowners raised prices too fast to catch inflation and people were not in a position to afford it, in which situation said decrease in home sales were observed. Another factor was that both housing loans were high and loans were not given. When the loan does not come out, it is necessary to buy it with cash money. However, those who have cash money have been turning to Exchange Rate Protected Deposit (KKM) or foreign currency that is currently moving again. Adding to this the recession in the summer season, caused sales to slow down, as well.”