Turkey February House Sales Drop
Statistics Turkey (TUIK), February Housing Statistics announced. Home sales were down 31.6 percent from the same month a year earlier. Evaluating the statistics, Turkey iClassified said: "prices have also started to fall."
According to the data announced by the Turkish Statistical Institute, home sales decreased by 31.6 percent in February compared to the same month of the previous year and became 81 thousand 222. Mortgage home sales decreased by 66.5 percent compared to the same month of the previous year and became 14,669. Turkey iClassified evaluated the announced data.
PRICES, SALES BEGAN TO FALL
Turkey iClassified reminded that the housing campaign in February 2020 of last year, “that campaign also reduced interest rates to 0.98 and 0.99. So we had a busy sales period. We had a second campaign period in May. As a result of some campaigns, such as falling interest rates, selling with a maturity of 15 years, there was a lot of demand, and this demand continued until November. We can also think of this as a slowdown of the pace we experienced at that time. It was a fire, it went out, prices, sales started falling. Its reflection on the overall economy would not be very positive. Because real estate, construction market is one of the most important sectors of Turkey. It employs 250 sub-and sub-industries. For this reason, the decline of the housing market is a reason that affects many branches of the entire economy.,” was said.
MAXIMUM SALES IN ESENYURT, PENDIK AND SANCAKTEPE
Turkey iClassified said that both the pandemic and the earthquake are properties whose price is rising:
"Detached, garden houses, duplex houses are currently popular. Villa type, detached type houses with less floors and more solid ground are popular. A few days ago, houses in Moda, Göztepe at a young age between 0-10 years were almost finished and sold. And the price of what happened is pretty high right now.
If we consider region by Region, type of real estate and district by district, we will get a healthier result. Between February of last year and February of this year, there is a 33 percent drop in even mortgage, overdraft sales, there is a 66 percent drop. Of course, this is due to interest rates. Last year, interest was 0.98-0.99, but now it is close to a low of 1.5. This is a big factor, especially in mortgage sales, the biggest factor is interest itself. A 0.5 percentage point increase in interest means a 50 percent increase in the money that the citizen will pay. That's why there's no attraction right now. As soon as there was demand, the owner, the builder, raised the price. We called it’ the balloon will go out'. And it's partially fading.
After seeing the decline in sales, I assume that prices will fall even further, but this will not be a decrease in construction between the ages of 0 and 10. High-priced ones can't sell anyway, while second-hand housing costs more. There are also two reasons for this; the first is due to the pandemic. Almost all houses built in the 80s and 90s have balconies. Most of them closed those balconies, but now those balconies are reopening. No one preferred garden floors, now garden floors are in demand. The second reason is the price.
In the same area, on the same street, there are houses next to each other of the same size. One is a 30-year-old building, the other is a new building. One is 500 and the other is 1 million. When you look at the current economic structure, the buyer's audience starts from 250-300 thousand and there are masses that aspire to homes for sale in the range of 700-800 thousand.
There are no buyers of homes that are in the higher segment of this. The most sales were made in Esenyurt, the second in Pendik, Sancaktepe. Because there is a lot of construction in these areas, and you can find 150 thousand, 200 thousand to 500 thousand different houses. Both the price is cheap and the option is a lot. So there was a lot of sales in these areas., ” he said.
RENTAL HOUSING PRICES AT 2018 LEVEL
"Rental apartment prices were on a downward trend starting in 2019," he said.:
“Even if it didn't fall, it didn't rise. Besiktas, Mecidiyeköy, such as 2 thousand 500, 3 thousand pounds in the neighborhood can not find the house 2019-2020, such as we started to find. Things changed even more when the pandemic hit. Student movements in Istanbul provide a great added value in housing. There are about 150 thousand real estate movements arising from the student movement in Istanbul annually.
About 50-60 thousand residences were idle when students did not arrive or left existing. 100-150 thousand Heat ended in an instant. There used to be the Syrian factor. Now they're not coming, they're gone. Urban transformation was partly effective. Although it was horizontal due to urban transformation, it has now decreased. So demand for rental homes has declined in several ways. At the moment prices are at 2018 levels and there is a lot of choice. Prices for rental homes are also falling.”
