In recent months, we have observed a continuous decline in the number of transactions in the real estate market. The market has been facing stagnation for some time, driven by various factors such as economic uncertainty, inflation, and a shortage of available properties. While I am still refining the data, initial analyses suggest that the number of transactions in the first half of 2024 will be approximately 30% lower compared to the second half of 2023.
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Why Has There Been a Decline in Transactions?
The reasons for the decline in transactions are varied. Primarily, many buyers are choosing to proceed cautiously due to uncertainties surrounding future economic conditions. Additionally, the supply on the market is very limited, particularly concerning older properties (especially apartments). This combination of factors has led to a slowdown in the market, which is also evident in the extended time it now takes to sell a property.
What Does This Mean for Real Estate Prices?
It is important to emphasize that despite the decline in the number of transactions, there has not been a dramatic drop in real estate prices. Instead, prices have remained stable, indicating that the market still holds a certain level of strength. While sellers may require more time to close a deal, this does not necessarily mean they need to significantly reduce their asking prices.
Historical data shows that periods of several years of price increases are often followed by stagnation or a slight decline. However, the current market does not show signs of the kind of downturn we witnessed during the global financial crisis over a decade ago. Instead, it appears that the market is entering a phase of prolonged stagnation, where prices remain stable, but transactions are less frequent.
Is Now the Right Time to Buy?
For buyers, the current situation could present an opportunity. Although the number of transactions is declining, this does not mean there are no good deals to be found. With fewer buyers in the market, better negotiation conditions may arise. Furthermore, the market is expected to become more dynamic during the autumn season, which could bring more favorable conditions for closing deals.
What About Sellers?
Sellers should be aware that the time needed to sell a property is extending, making it important to have a well-planned sales strategy. Adjusting the price and taking a more proactive approach to marketing can yield better results. During this time, it is crucial for sellers to work with professionals who understand current trends and can help achieve the best possible sale conditions.
Conclusion
The real estate market in 2024 presents certain challenges but also opportunities. While the number of transactions is decreasing, prices remain stable, indicating the market’s resilience. For buyers, this means an opportunity to find favorable deals, while sellers need to be prepared for a longer sales process. Whether you are considering buying or selling, it is important to closely monitor market trends and adapt to the current conditions.
In the coming months, it will be essential to track market movements and adjust accordingly to capitalize on emerging opportunities.
