Stagnation in the secondary market. “Fewer offers, fewer transactions and fewer loans granted”.
There has been a downturn in the number of offers, granted loans and finalized transactions in real estate in recent weeks, signaling a period of stagnation in the market. While there hasn’t been an excessive change in the developer market, with housing prices remaining fairly consistent, a slight price correction has occurred in the secondary market comparing the first and second quarters of 2024. Experts say future declines will depend on several factors: the most critical being the introduction, or lack thereof, of the “Loan to Start” program, and the creditworthiness of Poles. If the creditworthiness remains low, it’s possible we could even see a few percent drop in housing prices this Fall.
Longer waiting times for housing loans</_h2>
The real estate market has experienced something of a slowdown in recent months. Towards the end of 2023, it seemed that the year would bring about serious changes and perpetuate the “Loan to Start” program, thus potentially driving up housing prices, especially in the secondary market. The uncertainty surrounding this program initially resulted in many offers being withdrawn from the market, and we are now seeing a halt in pricing and even decreases in larger cities.
“There hasn’t been a revolutionary change yet, but considering the recent situation in the real estate market, the mere fact of price stagnation could indicate a certain shift. Currently, we can see that there are fewer offers on the secondary market in larger cities and prices are decreasing slightly month by month,” says Miroslaw Krol, a real estate expert.
The expert adds that the phrase “month by month” isn’t coincidence. The last quarter saw a significant decline in the number of mortgage loans granted, meaning that there are fewer transactions taking place. Lately, properties are being purchased in cash or through sparse loans granted by banks.
“There is great anticipation at the moment. It isn’t that consumers are not interested in buying apartments. They just don’t know what to do and this confusion impacts the entire market. Some are waiting for the “Loan to Start” program, others are waiting for price drops due to the absence of the program, and yet others are waiting for more offers and the opportunity to take out a loan on standard conditions. The situation is difficult and uncertain,” says Miroslaw Krol.
People with cash should be happy, as unusual opportunities are appearing
So, what is actually happening in the secondary market? A minimal drop in housing prices has been noted in cities such as Poznan, Krakow, Szczecin and Wroclaw.
“Prices of medium-sized apartments are falling the most. Prices of large apartments have always been relatively lower, whereas prices of studio apartments are out of competition because they have always been high and, at the same time, their availability in the secondary market is low. It’s also worth mentioning that studio and small two-room apartments are most in demand by customers,” says Miroslaw Krol, a real estate expert.
Experts also add that there are some attractive offers appearing on the market.
“They appear and quickly disappear. There have been recent offers in Szczecin for secondary market dwellings, in ready-to-move-in condition, priced around 6.5 thousand zloty. This would’ve been unthinkable at the beginning of the year,” adds Miroslaw Krol.
Source: https://managerplus.pl/zastoj-na-rynku-nieruchomosci-mniej-kredytow-mniej-transakcji-mniej-ofert-44289
