Bulgaria’s fast-paced housing market has slowed down its growth rate in the second half of 2008, local real estate agencies said.
Over the past three years buyers got flats for some 20,000 euro ($32,000) and sold them for a double or triple price later, Dnevnik daiy reported. Another popular tactic was to announce the launch of a housing project and sell it off-plan for hefty profits.
However, this period is over. Local realtors have grown more outspoken about the market slow-down. Deals take more time and dwindle in number and supply far outstrips demand.
Many realtors claim the market has reached its peak and will settle down.
Buyers grew less active in the second quarter of 2008 and supply outpaced the demand by 50 pct, Address real estate agency said. The market slow-down was triggered by the several lending rate hikes, which were felt most acutely in the spring. Now buyers have given up their rush to buy for profit from rising property prices. Instead, they are ready to wait for a favourable price, unless they have a pressing need for housing, Address added.
Buyers can now pick and choose and can influence prices to a certain extent, said Diana Antonova of the Yavlena real estate agency.
The average prices of housing will continue to rise but at a slower pace, experts forecast.
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