In Moscow there is an increase in the supply of apartments with discounts in January

In Moscow there is an increase in the supply of apartments with discounts in January
Against the backdrop of declining demand on the Moscow secondary housing market, in January the number of owners willing to give a discount on sale increased. Now between 30% and 50% of apartment owners are ready to negotiate.
According to experts, if at the end of 2023 every third seller agreed to bargain, now every second seller agrees. In December, no more than 30% of sellers were ready to negotiate—this is a common occurrence at the end of the year, given the pre-New Year mood. At the moment, at least half of the market already agrees to bargain; sometimes sellers are not against even giving up 5–8% on the first appeal, experts say.
The situation may change radically in the spring of 2024. Then the secondary market will emerge from a state of stagnation, buyers will get used to the current situation and high mortgage rates, and demand will gradually intensify, experts say.
Among the reasons for the increase in the supply of discounted secondary housing, experts cite a decrease in demand and an increase in market mortgage rates. The changing conditions for preferential programs had an impact. Many are in a hurry to sell their apartments in order to qualify for benefits.
Among the reasons for the increase in the supply of secondary apartments at a discount, experts cite a decrease in demand, which will not end in the near future, as well as an increase in market mortgage rates (up to 17% per annum).
According to experts, the number of new applications for the purchase of secondary housing in Moscow in three incomplete weeks of January 2024 decreased by 30–35% year on year and tripled compared to the same period in December. As a result, applications for housing loans at the beginning of the year became sporadic.
In addition, changes in the concessional lending market had an impact.
At the end of December, an increase in rates was announced, and citizens tried to take out a loan at a lower interest rate. Most of those who sell secondary housing buy apartments in new buildings. Therefore, the owners went for a discount in order to speed up the implementation and further solution of their housing issue, experts explain.
Currently discounts range from 5% to 8%. You cannot yet count on a larger discount - most owners are not ready for this. If the seller urgently needs to sell the apartment (for example, he wants to leave or is unable to pay the mortgage), then the discount can be about 10%.
In general, now the seller and buyer are trying to meet each other halfway. Gradually, the market began to move from a seller’s market to a buyer’s market; there is a certain balance of interests, experts summarize.
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