For a long time, the real estate market in the US was dictated by sellers. They offered a small number of properties, transactions were completed relatively quickly and at high prices. Today, the situation has turned around and the market is driven by buyers, say intermediaries quoted by the WSJ.
The difference between the number of properties announced on the market and actual buyers in May reached 500,000. In practice, we are witnessing the largest imbalance in the market since 2013.
The factors that led to us observing such a picture are high mortgage interest rates - 6.8%, overvalued properties and the unstable economic situation in the US. “I don't think demand will return soon. The reason is that prices are quite high“, commented Chen Zhao, chief economist at Redfin.
In practice, the American real estate market works according to new rules. For example, sellers are now offering discounts on the asking price. They are also willing to cover part of the costs of transferring the property. The number of listings also reported a significant increase - 21% in May compared to the same month last year. Sales reported the weakest month of May since the crisis in 2009. The imbalance reached levels where there are three times more sellers than buyers. Such examples are Miami and Atlanta.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen HERE