The second quarter of 2024 did not bring comforting news for those preparing to buy a house. Prices in transactions on the secondary market are again on the rise, as are average prices in developers’ catalogues. The latest data on this subject is presented in the Barometer prepared by Metrohouse, Credipass, and RynekPierwotny.pl.
Why are prices rising again?
Although the pricing on the developer’s market is a derivative of many factors, such as the costs of producing a flat, the competitive environment, or the size of demand and supply, the secondary market is governed by slightly different laws. Marcin Jańczuk, co-author of the Metrohouse and Credipass Report, explains, “Flat owners for sale usually approach the valuation of their properties too optimistically, which results in a prolonged sale but also involves rejecting seemingly less attractive purchase offers. Increasingly longer sales, however, lead to the realization that the property, in order to complete the transaction, should have a corrected price.”
Moreover, we noticed an interesting phenomenon when offers with small but noticeable price drops, appeared in the reports. At the same time, transactional data in the current edition of the Metrohouse and Credipass Barometer shows that the upward trend is continued in each of the analyzed cities. This situation is due to many offer prices being completely detached from the market situation.
Steady increases in the new apartment market
On the new apartments market, average offer prices per square meter were rising in each of the biggest cities. The scale of these quarterly changes turned out to be differentiated. Andrzej Prajsnar, an expert from RynekPierwotny.pl, adds, “For example, the Warsaw primary market could have been described as relatively price stable in Q2 2024. The same cannot be said about Wrocław, which began to ‘expensive’ after a longer period of price stabilization.”
Waiting for the launch of the new program
In the second quarter of 2024, the draft new government support program for borrowers, housing credit #naStart has finally emerged. Andrzej Łukaszewski from Credipass, one of the authors of Barometer, observes, “We do not yet know the method of calculating creditworthiness and whether it will be different, as it was in the case of Safe Credit 2%, where creditability could be about 30-40% higher than standard. What is certain is that customers who planned to purchase a property in the fall using subsidised loans will have to wait. According to the latest information, the paragram will only start in January 2025.”
Source: https://ceo.com.pl/w-transakcjach-nie-widac-upragnionych-spadkow-cen-mieszkan-23042
