The major domestic real estate agencies have become more outspoken about the softening market and the standstill in property prices.
In some areas, demand is significantly weaker than the existing supply with the spread between the listing price and the transaction price reaching up to 20%.
There are just as many buyers but they have a ceiling price they are ready to pay and it is lower than the asking sale price, said Katya Tsenova, manager of Address Real Estate.
There is also a great discrepancy between the supply and demand in the different Sofia neighborhoods. The abundance of listings in some boroughs is resulting in few transactions while the attention of home buyers is focused on other districts.
Address data shows that demand for two-room apartments is concentrated in the Mladost, Lyulin and Ovcha Kupel boroughs while most of the listings are for apartments in Lyulin, Vitosha and the center of the capital.
One-room apartments are listed at 45,000-65,000 euro but eventually sell in the range of 49,000-51,000 euro. The asking sale price for two-room apartments is 60,000-80,000 euro whereas the transaction price is lower at 60,000-65,000 euro on average. Three-room apartments are advertised to buyers at 80,000-150,000 euro but in most cases do not fetch more than 80,000-90,000 euro.
According to Mladen Mitov from the Yavlena real estate agency, home buyers have become more picky.
The number of property transactions is unchanged but what has changed is the time that is spent on the selection and sale negotiations, said Mitov.
Realtors said that the listings in some residential quarters are overpriced and will not attract buyers.
In the last month, for instance, more than 120 homes in the center of the capital were on the market and less than five of them were sold. The same trend is emerging in the Vitosha borough.
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