Interesting trends are observed in the five regional cities with the most active market

Interesting trends are observed in the five regional cities with the most active market after the release of data for the third quarter of 2018 on the number of real estate transactions and the number of mortgage transactions and on the basis of our observations on average house floor prices in the period 2015 -2018

At the stage of balancing demand and supply and slowing the rise in average residential property, prices is entering the real estate market. This gives grounds for talking about the maturity of the market and the responsible participation of all the subjects in it.

In the charts below, we have compared the dynamics of local markets as a percentage of the growth/fall of the three indicators (number of transactions, number of mortgage transactions, and average cost of living area) for the nine months of the period 2015-2018.

Sofia - an obvious tendency to decrease the growth of both prices and of transactions and mortgages.

Obviously, the market is entering a new stage of supply-demand balancing. The dynamics of housing prices over the period reflects the other two indicators. On the one hand, buyers' behavior changes in the direction of postponement of purchase in order to improve the complex characteristics of housing demand and negotiation opportunities. On the other hand, this delay reflects on the use of borrowed funds from commercial banks. The complex three indicators are interlinked and will outline the activity of the capital market, in particular the housing market, by the end of the year, and we expect the dynamics of average residential property prices to continue to decline. This in turn leads to an extension of the average purchase term and, if the trend continues, will lead to an extension of the sale period of the properties.