Istanbul Gelisim University - House sales breaks a record

House sales breaks a record

TurkStat announced the house sales figures of the September. It shows that house sales in Turkey increased to 146.903 by 15.4% compared to the same month of the previous year. Monthly house sales have been the highest since 2013, while demand for second-hand houses has boomed. Financial Markets Specialist Hakan Yıldırım evaluated the increase and said that it is clear that this increase will have a positive impact not only on the real estate market but also on other related sectors.

Yıldırım, evaluating the increase in housing sales and explained: “Since sales will lead to needs such as furniture, household appliances, decoration and insurance, it will revive not only the housing sector but also the sectors that produce and sell these needs which constitute a significant part of the real sector. Thus, a positive atmosphere in the economy will begin to appear.”

“HOUSE SALES INCREASE CAN RISE PRICES”

Emphasizing that increased housing sales will also affect housing prices, Assist. Prof. Dr. Hakan Yıldırım from Istanbul Gelisim University said: “The increase in both new and second-hand house sales will lead to an increase in house prices. At this point, some of the people who want to buy house may prefer to buy house at the moment considering that the increasing housing prices will continue, and some may postpone their purchases considering that prices will remain at this point or prices will be withdrawn.”

“PRICE STABILITY MUST BE PROVIDED”

Pointing out that it is important to ensure price stability in housing, Hakan Yıldırım said: “Constantly changing price movements may frighten both the buyer and the investors planning to make investments, and housing sales may fall. In addition to price stability, interest rates on housing loans play an important role in investors' buying process. While the decrease in housing loan interest rates revives real estate purchases, in case of interest rate increase, real estate purchases may decrease.”

Yıldırım ended his speech as follows:

“When we look at the data, it is seen that mortgage sales for September 2019 increased by 410.2% compared to September of last year. The most significant reason for this situation can be understood by the decrease in housing loan interest rates. If the interest rate on housing loans decreases or remains constant, it may increase the probability of the real estate market to survive. On the other hand, if the interest rates offered by private banks are equal to the interest rates offered by public banks, housing sales will reach a higher level, and the positive condition reflected in the real estate sector will make a major contribution to the economy.”