The real estate market has calmed down after several years of rapid growth in rates. People are buying apartments and houses again. But the situation has changed dramatically compared to 2021. If then they were in a better position as sellers, now they are buyers.
Just before the years began to skyrocket, I managed to sell an apartment in a matter of days. Today is a quiet month. People are buying more, often wanting a discount over the original price, says Home City real estate agent Piotr Ivanko.
But immediately, in one breath, he saw that the market was recovering. People resigned themselves to years of nudity and started shopping again. Martin Slavk, who specializes in Pardubice and the surrounding area, agreed with this.
We have moved from a situation where several hundred tenants applied for apartments, to a situation where supply far outstrips demand. However, things have improved in the last few weeks, the market is calming down, and I feel better in society. I’m interested in buying real estate – said Martin Slavk on his website.
However, the fact that average mortgage rates moved relatively quickly from the 2% to the 6% limit could not remain without consequences. Small apartments sell best. You can quickly change the owner of an apartment up to a million and a house up to six. Moreover, it is much longer and slower. Recently, I sold a house that originally cost 13 million, but I managed to sell it for only nine, – said Piotr Ivanko, adding that the apartments sold better because they subsequently rented out better. Therefore, first of all, investors want apartments with an area of 2 + kk. First of all, I’m worried about you,” Ivanko explained.
However, according to Martin Slavek, the growth in annual rates puts pressure on prices. According to his estimates, a 2+kk apartment in Pardubice, which cost them three million last year, was sold for 3.1 million this year.
This year, further price reductions of up to one percent are expected, but only for apartments whose prices have been adjusted. For apartments that have not yet responded to the current market situation, price corrections of up to 20 percent can be expected. It is more profitable for a buyer to buy cheap real estate with a high annual rate, rather than expensive real estate with a cheap mortgage, as was the case in previous years, Slavk said.