Will apartment prices in 2021 – the question is more than relevant. More than 20% of the population of the USA do not have their own housing. Ordinary citizens who dream to buy an apartment, waiting for the right moment to buy “good and cheap”. Wealthy USAне also interested in the real estate market, but for a profitable investment of their savings. Cheaper or more expensive square meters in the near future and are interested in both.
Factors affecting the price
To predict cheaper or more expensive flats in 2021 is quite difficult. The greatest impact on the property market and provide economic factors. These include:
- the level of wages of the population;
- the unemployment situation;
- the debt load of citizens;
- the conditions Bank loans and much more.
In simple words, the less people have purchasing power, the lower the demand, and therefore price is lower. In this case, as economists say, the state of domestic economy sometimes reflected in real estate prices is very precarious. The economic law of “supply and demand” in real life often does not work. Thus, the financial instability in the country does not reduce demand, but on the contrary exacerbates it. The effect of price expectations and the people in the hype are buying real estate, hoping to save accumulated. Often these deals are quite profitable, due to further falling prices.
The cost of “cherished dreams” of many USAн depends largely on political factors. Great importance has a political policy of the authorities concerning provision of housing. Increased demand stimulate:
- government subsidies of the mortgage loans;
- maternity capital;
- cash subsidies in the form of the first payment for low-income citizens, etc.
Negative impact on the market has a tense geopolitical situation in the world. Dependence on the dollar, the cost of a barrel of oil, the sanctions imposed against USA, can manifest as an increase in demand and housing prices, and a complete stagnation of the real estate market. So, in 2014, after the introduction of the first sanctions due to the annexation of Crimea to USA, there were a huge number of transactions. As a result an incredible demand in the inertia of price per square meter crept up and by the first quarter of 2015 reached record highs. A similar situation of economic instability of 2008, on the contrary led to a complete lack of deals and a significant drop in prices.
For information. According to the Ministry of construction of the five regions with the lowest housing costs included in Kabardino-Balkaria, Dagestan, Saratov, Bryansk oblast and Kalmykia. The cost per square meter in these regions is on average 30 thousand rubles.
Dynamics of prices per square meter in new buildings
Heterogeneous dynamics of prices for new buildings has stabilized and has taken a positive trend. A leader in increase in the cost became Sunny Sochi. From January to December of 2018, the price of the “m” has increased by almost a quarter. During the same period, the Moscow apartments has risen by only 3%. The increase in the cost of new buildings was expected for the following reasons:
- cancellation of share construction;
- news about the rise in price of mortgages in the near future;
- the VAT increase;
- the fall of the ruble.
This suggests that more opportunities to raise prices than to lower them. But on the other hand, the supply of buildings far exceeds the demand for them. With the increase in interest on the mortgage and the sale of new apartments, this ratio will shift even more in favor of the proposal. According to economists, it is unlikely to trigger a price decline, but a sharp increase in fear is not worth it. Most forecasts agree that the cost per square meter in new houses will not rise more than 10 %.
Prices on the secondary market
On the secondary housing market can be traced a steady trend of increase in the cost of the “square”. The analysis was conducted in 79 regions of the USA, 75 of them was an increase in prices. The increase was negligible (on average from 0.1% to 3%). Record jump in prices for secondary housing is fixed in the Amur region — 9,6%. In square meter grew by 6.6% and stood at RUB 203561 Cheaper housing only in 4 regions of the Russian Federation. For example, in the Ivanovo region, the cost of apartments fell by 0.5%.
Experts believe that it is unlikely that the cost of housing will rise further. One of the factors which hindered hitherto the prices at the same level, is still relevant. We are talking about low solvency of the population. Most people are barely “making ends meet”. In addition, the “secondary” loses the segment of new buildings, and reduction of prices, perhaps the most important weapon in the fight for customers.
Note. According to realtor agencies a large part USAн prefer to buy an apartment without repair buildings with developed infrastructure than renovated apartments in the secondary market.
The location, i.e. the location of the apartment plays a key role in shaping prices in the market. That’s the conclusion reached by the experts. According to the statistics of real estate agencies only 33 % of people choose price. For the rest USAн fundamental criteria at the moment are the status of a city or region, as well as the prestige of the area. So, in the Moscow region and areas near the black sea coast the cost per square meter is growing regardless of external factors.
Within the city or any settlement price determined by the surrounding environment. Buyers are mostly not against to pay, but to live in an ecologically clean area, with low level of criminality. As for the comfort of the area, today it is not a reason to inflate the price when selling. Rather, it is the norm, and without a decent infrastructure is expensive to sell an apartment is unlikely to succeed, despite the General trend of increasing prices.