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The housing market rushed up. What is really going on?

The housing market rushed up. What is really going on?

In the fall of 2019, the apartment market rushed up. In the money segment from $ 20,000 to $ 40,000 all over Ukraine there was a sharp increase in prices to 12% if we take July prices for apartments as a base, for example.

What is really going on?

Given the shortage of real estate in the primary market, which was formed due to the “freezing” of a critical number of construction projects, money capital went to the secondary market. Thus, in 5 months of active sales, the market is almost completely empty. As the financiers say, the "balloon" pouted to a critical volume.

Why is there a shortage of real estate?

The fact is that a number of crises formed the secondary real estate market from “free” apartments. Those. the apartments in which people live and dream of exchanging are so small that when crisis processes occur they completely go into isolation. This indicates that the bulk of the population has no monetary accumulations that allow solving the housing problem by means of a congress or a trip. Thus, mainly surplus housing falls into the secondary real estate market. This is how housing was once purchased for rental, and apartments inherited. As a rule, hereditary apartments have not seen repair for a very long period, and therefore have a low cost. But, despite this, even such apartments are in demand.

Who or what affects the number of customers?

Unfortunately, we still cannot ascertain the general growth of the economy, which, together with cheapened money (loans from banks), directly affects the growth of real estate prices. Today, the main face of the capital's buyer is a resident of another city, moving to the capital of Ukraine. Those. it is just internal migration.

What will happen to the prices?

According to analysts of the torro.com.ua portal, the "swollen" real estate market should "let off excess steam." And this is confirmed by the fact that at rising prices there is practically no buyer. Those. the buyer is no longer able to buy property at an inflated price, this is on the one hand, and the seller does not put up his apartment for sale, because he does not understand what will happen to the prices?

Hence the conclusion: if you plan to sell your apartment, then the best time is today! Tomorrow - it will be cheaper.