Expensive apartment cheap loan or cheap expensive loan?
We are once again in the housing market before switching. But the turnaround in the real estate market is very slow, as sellers are confident for up to 1-2 years to sell their homes at the coveted – formerly – high prices.
Question of the year: how long do prices go up?
In spite of the growing number of forecasts that buyers should lose and the market slowing down since the beginning of the year, peak real estate prices are still stable. But according to experts, cyclical switching will occur as it has been many times before.
When housing prices turn favorable, many people are surprised by the market, including those who have postponed purchase for years.
In any case, demand will spur the market – at the turn of the millennium, the effect of state aid and foreign currency loans – and a price explosion will occur. Developers are getting started, they are taking out loans, and the supply on the market is increasing as a result of construction (the growth in new real estate is now limited by the unpredictable VAT environment).
Until the momentum and purchasing power are exhausted, the price will be unstoppable. Many people bring the purchase forward because they fear it will be more expensive next year. Then, when there is too much housing and loans become more expensive, it becomes increasingly difficult to sell real estate.
We are currently in this phase of the regular housing market cycle.
Is it worth investing now?
When the ‘mood’ of the market changes, it is unpredictable, and sellers have been trying to keep prices high for a long time, so it may take 1-2 years for the seemingly logical price drop to occur.
According to experts, credit rates are going to increase soon, so we can buy cheaper homes, but with less credit. Five years ago, for example, the current loan was three times the average APR, but the real estate was sold at half the price as it is now.
Experts can help you calculate how much a price decline compensates for an increase in interest rates . However, when exactly the shift will occur, no one will be able to tell in the first half of 2018.