The average asking price for apartments on the secondary market in major cities rose by about 1% in January, a shift that followed a new climb in mortgage rates which cooled buyer activity. This trend was reported by Kommersant and aligns with observations from other large markets in North America where higher financing costs have restrained demand in recent months.
Analysts caution that buyer interest is unlikely to rebound quickly. If demand remains subdued into the spring, there could be modest downward pressure on prices across many urban markets in Canada and the United States as sellers adjust expectations to changing financing conditions.
In January, the average asking price on the secondary market across more than 16 million cities and two regions reached 141 thousand rubles per square meter, according to data compiled by CIAN. This marks a 1% increase from December while the annual pace of growth decelerated from about 2% per month to roughly 1% per month.
Among the largest monthly moves were Krasnodar with a 2% rise and Nizhny Novgorod with a 3.2% gain. St. Petersburg saw prices edge up by 0.4%, while Moscow held at 279.3 thousand rubles per square meter, up a modest 0.1% from December.
Avito Real Estate notes a 35% drop in demand in the secondary market, attributed to higher mortgage rates. Experts point to the central bank’s key rate as a major factor, suggesting that even if rates plateau, activity among buyers will stay constrained.
Analysts warn that weaker demand could translate into price declines in the spring, while sellers appear hesitant to accept lower offers. Yet they also expect the level of negotiation to rise as market participants adapt to the new financing landscape.
Looking back, observers noted renewed interest in new builds toward the end of 2023. Some later forecasts suggested a shift where mortgage financing could increasingly be perceived as a premium feature rather than a routine affordability option in 2024, a trend that continues to influence buyer psychology in the broader North American market as well.
Across North America, the trend mirrors a broader recalibration: buyers are weighing elevated monthly payments against long-term value, while developers and sellers recalibrate pricing expectations to reflect tighter credit conditions and shifting demand patterns. This ongoing recalibration is shaping the pace of activity in Canada, the United States, and comparable large cities, where the supply-demand balance remains delicate as financing costs evolve and economic signals adjust.