The changed market situation unexpectedly provides many opportunities for both buyers and sellers of real estate.
Recently, there has been a lot of talk about the quiet period in the real estate market. According to Solid House OÜ, the calmed market is not caused by buyers waiting for a drop in prices, but by general uncertainty.
The situation on the market has changed so quickly and to such an extent in a short period of time that the uncertainty of home buyers is understandable, says Leena Tuijula, founder of Solid House OÜ.
Buyers now want to think even more thoroughly about which solutions would make the most sense in terms of their own living expenses and in terms of preserving the value of the property. Owning a home is still the most important investment for most Estonians.
However, apartments and houses are for sale both in the current situation and in the future. The size of families and living conditions continue to change, people move to a new place due to work, studies, etc., and also want to give up or change homes for other reasons, says Tuijula.
The desire of people living in rented apartments to own their own home has increased compared to a year ago.
Unlike renting, owning a home also accumulates wealth, says Tuijula.
The biggest increase in interest rates has already happened.
There has also been very little public discussion about how the changed market situation is also a great opportunity for many.
According to forecasts, the biggest rate hike is behind us and there is no dramatic increase on the horizon.
According to several professionals in the financial sector, the housing loan interest rate will remain around three percent, which means that according to the forecasts, the interest rate will remain quite moderate, says Tuijula.
Interest rates have never been at 0 to stay, but the rise in interest rates was expected.
The price of energy will definitely stabilize to a certain level, but it may take a year or two, if not more. Is this something worth waiting for? Or should you think about the possibility of making repairs to your new home that improve energy efficiency and thereby also increase the value of your property?
Wins and losses when changing an apartment
The fall in housing prices does not appear to be as significant as was predicted at the beginning of autumn. By no means will the prices of all apartments fall.
In the past few years, property prices have risen more in an overheated market for residential properties, but are now predicted to fall.
Those who are currently changing apartments are in a particularly good situation. If you lose a percentage of the decrease in value of your item for sale, you will gain it back by buying it. The general situation will not change, says Tuijula.
Those who exchange a cheaper apartment for a more expensive one may even win, because the possible price drop in euros for more expensive apartments is greater.
More properties available
If home exchange is now relevant, the buyer has more choice again. The selection on the market is larger and more diverse than in the previous few years.
After the heated market calms down, the buyer also has more time than before to make an offer and get to know and research the property.
Due to the changed economic situation, Tuijula recommends reviewing your wishes and search criteria and using the help of professionals to assess your overall situation.
If your own calculations have previously led to the purchase of real estate at a fixed price, and now, due to rising interest rates and energy prices, the expenses exceed your previous budget, the criteria for searching for an apartment must be changed. Real estate professionals are happy to help here.
