When should we expect the prices reducing?

There are a lot of the screaming headlines today saying: "Experts predicted a drop in housing prices in Russia by the spring of 2024."  But as a matter of fact we don’t see a decrease in real estate prices in January 2024, and even in some segments we see minimal growth.

According to the latest information, the decline in sales in the real estate sector is caused by an increase in the cost of mortgages. There are lower sales, but not lower prices. The current situation has not yet led to a reduction in average house prices, but has only slowed their price growth. Over the past month, apartments in the secondary market of the largest cities have risen in price by only 1%. This indicates that the real estate market is responding to changes, but has not yet moved to radical changes.

In the future, the situation in the secondary market will largely depend on the policy regarding the Central Bank's key rate. Decisions made in this area can have a significant impact on the dynamics of prices and sales volumes.

The decrease in demand for secondary housing in January 2024 can be explained by several factors. First factor is low activity after the New Year holidays that traditionally affects the real estate market. Second factor is the increase in the cost of lending makes the purchase of housing less affordable for potential buyers.

So far, there has been no decline in housing prices. Instead, some of the apartments that do not find a buyer are likely to move into the rental segment. This happens due to the fact that the rental price has increased significantly over the past year. As a result - real estate that was previously sold may find new uses in the rental market.

It is important to note that there will be objects on the market whose owners are interested in urgent sale. This can create additional pressure on prices and lead to more significant corrections.

The question that worries many potential real estate buyers is: when is the best time to make a home purchase? Today, many experts advise to postpone the purchase indefinitely due to market instability. However, what are the alternatives to this approach?

If you do not have an urgent need to buy a home, then it may be worth considering postponing this step for six months ahead. This approach may give you the opportunity to purchase real estate at a better price in the future. However, it is worth remembering that it is difficult to predict the real estate market, and each situation is individual. Therefore, we recommend contacting professionals in this area.

Our team of real estate specialists have conducted a thorough study of the real estate market in St. Petersburg and the Leningrad region. Our knowledge and experience allow us to predict market trends and patterns, which provides us with the opportunity to help you make the most profitable deal with guaranteed security.

We are ready to share our knowledge and experience with you to help you make an informed decision on the purchase of real estate. Our goal is to ensure your success and confidence in your choice. Contact the professionals and be confident in your future!

Contact us:

• Tel: +7 (812) 325-38-38 (from 9-00 to 21-00 on weekdays; from 10-00 to 18-00 on weekends and public days)

• Address: Russia, 199406, Saint Petersburg, Nalichnaya Street, 22

• You can also ask our specialists online