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Tuesday, March 20, 2018

Cold fall: housing prices are “frozen”

October has finally confirmed that the attempts of the Moscow square metre to grow with the arrival of autumn was not a success. The volume of transactions the fall was worse than summer. Any artificial increase in demand and then turns to stagnation, experts believe.

photo: Gennady Cherkasov

Pause for recovery

During the summer both sellers and officials actively frightened home buyers the inevitable price increase since the beginning of autumn. As a result, the market activity and sales volumes during the summer were abnormally high. However, the fall of retribution has come. “For the first time in many years, and the activity of buyers, and sales volumes were lower in autumn and summer months, and that was to be expected. In the current environment, effective market demand is limited. And if for some reason it is accelerating the exhaustion, then the market takes pause for recovery,” — said the head of ATS IRN Oleg Repchenko.

According to experts, have been frustrated and hope that the fall of real estate prices in Moscow will go to growth: in fact, the average level of prices in the last months of twitches around the level of 175 thousand rubles. per meter with a variation of plus or minus 1-2% and do not show any consistent trends. So, in the month of September the average cost of apartments in Moscow, according to the “ABC of Housing”, fell from 21.8 to 21.6 million RUB million RUB In the economy and comfortclass prices have not changed, but the business class has grown a little bit.

It is noteworthy that the dynamics of prices and types of apartments and geography, and also does not reflect any trends and even any logic. So, most likely in October rose in price “dvushki” and “treshki” — the slowest. While closer to the averages behaved “edge” of the market — “odnushki” and multi-room apartments.

Similarly, in the context of the types of houses “better market” equally made all of the building and a modern monolith-brick house, and worse than average — modern bar and the old “elitka” — Stalin’s house, “counterbore” and other brick of the Soviet era.

“Geography is the most expensive Central district even went down, while the next prestige and expensive Western suburbs proved to be the best of the market, along with the entire East and North of the capital. In this South-Western suburbs at the end of the list, and all areas outside Moscow, at the average level,” — said Repchenko. In his opinion, this state of Affairs suggests that with the advent of autumn, market participants behaved in relation to the prices of flats according to the principle “who in what is ready”. Not surprisingly, sales volumes were lower in autumn and summer. It is not only exhausted for the summer effective demand, but in the autumn and sometimes inadequate pricing policy of some sellers, which now gradually aligned.

Syndrome frustration

As a result, the market is gaining strength curious phenomenon. “More than a third of all sales in the secondary market in September fell on apartments costing up to 6 million rubles,” — said managing partner of “MIEL — offices of real estate” Marina Tolstik. Incomes continue to decline. People choose the most affordable objects. “Buyers have a limited budget for purchasing an apartment, especially expecting the summer season hoping to get maximum discounts. And September can be seen as the result of years of searching,” — said the expert.

As the Director of the Department of the secondary market of “Incom” Sergei Shloma, many sellers are desperate to sell their flat — after all, some objects are on sale more than a year. As a result, the market formed a “syndrome disillusioned seller” — owner, is not willing to reduce the price even more disillusioned with the buyers, realtor, market conditions in General, so just postpones the deal and goes “underground” in the hope that in the future something will change.


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