Sofia housing market of summer 2010
During the summer months, the housing market in Sofia city was quite uncertain. Both the sellers and the buyers needed more time to think about and were less active, while the prices of the Sofia apartments were a real mess at first and then started to stabilize. This finally let to an increase of 1.5 percent when compared to the previous six months. The Registry Agency data shows that the number of the real estate sales has declined when compared to the first half of year 2010. There is however an early indication for a recovery, as the number of the sales on apartments with discounted prices is going up. The statistics on prices presented until that moment speak of stabilization, while the sellers are restricting the levels of supply.
In general, it seems that the property prices in Sofia, and in the country as well, are reaching the bottom, while the economy is shrinking and the foreign investments are at their lowest levels for the last five years. As the confidence of the property buyers is at its lowest level for the last decade, there were not many deals signed even if the banks are providing loans with low interest rate, property buyers are not willing to operate in a market with changing price levels and uncertain economic situation. Actually, the buyers have their desires and plans, but they find it very difficult to reach a decision and they delay them in time. At the same time, the sellers are encouraged by the slight process of stabilization and are no longer willing to sell at discounted prices.
The research made shows that there is a tendency for stabilization of the Sofia apartment prices, but the uncertainty of the buyers remains to be a factor and bank loans are not popular. The low prices are still a major factor when the Sofia property buyers are looking for a family home and it is the price that keeps the interest towards a certain Sofia apartment. In general, the real estate companies are not willing to make long-term prognosis, since there is no clear and solid trend.
