The excitement associated with economic uncertainty is pushing those who were just planning to buy a home to do so as soon as possible. However, haste is not the best advisor in this situation, experts say. The most correct tactic for buyers at the moment is not to rush into a deal, and if there is such an opportunity, generally postpone it for a while.
As is well known, the secondary housing market is most of all subject to the general tendencies of falling prices, because most often homeowners keep apartment prices for years, waiting for a better situation. Therefore, in this segment, a quick and at the same time significant drop in prices simply cannot occur - two to three times, as some buyers would like.
According to analysts, the real estate market is waiting for a reboot in the near future, from which they will benefit real estate buyers and large companies with a system of long-term strategic planning and minimizing risks. The boom in residential real estate transactions in March saturated consumer demand, and against the backdrop of an unstable situation in the country and real decline in income in some industries is expected to significantly decrease demand for real estate in the next three to four months. The situation may be aggravated by the increase in mortgage rates and the increase in requirements for borrowers. How long the country will cope with the coronavirus, including how deeply it sinks Russian real estate market and how long it will take to restore the existing rates growth. It is possible that against the background of a decrease in demand, developers and apartment owners in the secondary market will be forced to adjust prices for their properties. Nevertheless, the period of low prices is unlikely to be protracted. The recovery in demand for residential real estate will traditionally trigger further price increases.
Source: RBC Real Estate