The latest data hints that the rise in resale housing prices may slow down or even reverse. The report from Kommersant highlights this developing trend and frames it as part of a broader market adjustment.
Top market observers suggest that the persistent growth in secondary housing prices seen over recent months is unlikely to continue at the same pace. Analysts from CIAN.Analytics, Inkom-Real Estate, and Etazhi observe early signals of a transition into a stabilization phase, with some indicators pointing to a possible price softening for apartments in several key markets.
For example, October through November saw price offers in major regional hubs rise by about 1.5 percent on average each month. Yet during that same window, the rate of discounting in advertisements expanded noticeably, as noted by CIAN.Analytics. Buyer interest also cooled, slipping by around 20 percentage points, which experts attribute to a shift in demand patterns for new housing projects and the changing dynamics in the market for secondary housing.
Representatives from Inkom-Real Estate and Etazhi report that the size of price concessions in transactions has grown as demand softens. The proportion of homeowners who lower asking prices in listings has effectively doubled, though a substantial segment of sellers continues to hold firm on original price levels. This imbalance underscores ongoing negotiations within the market and the importance of strategic pricing for sellers who aim to complete trades in a softer demand environment.
Industry forecasts point to a possible price correction by spring 2024, with secondary housing costs in several major Russian cities potentially easing by an average of around 10 percent compared with peak levels. While some markets may experience modest adjustments, others could follow a similar trajectory as buyers recalibrate value and affordability in a shifting economic landscape.
In Moscow, there has already been a notable easing in demand for resale apartments, reflecting broader national trends and the impact of evolving buyer priorities. Real estate practitioners advise buyers and sellers to stay informed about changing mortgage terms and financing options, as these factors continue to influence price dynamics across markets.
Recently, experts noted that Russians could explore strategies for acquiring homes even with non-conforming mortgage products, provided they undertake careful planning and seek flexible financing solutions. This evolving financing landscape adds a layer of nuance to market activity and can shape purchase decisions in the near term, especially in markets where prices remain elevated relative to local incomes. [Attribution: Kommersant analysis and commentary from industry firms]