What is happening to house prices? Very often, analysts make forecasts for the market in our country, taking into account the trends in the West and in the USA. This became especially relevant after the crisis in 2008-2009, when the collapse of the market beyond the Ocean quickly reached the Bulgarian market as well.
Looking at the situation in Europe today, it can be concluded that property prices will remain unchanged with a slight upward trend until the end of the current year.
In some countries, such as Great Britain, the housing market is slowing down. In August, the market registered a slight decline for the first time. The last such one was in April of the current year. On an annual basis, however, prices continue to report a slight increase. In August, the average house price on the Island was £265,375, down 0.2% on July, according to Nаtіоnwіdе data.
The monthly decline was the first since April, despite the fact that the averages remained the highest since October 2022. Last month, the annual growth rate of prices reported a growth of 2.4% compared to 2.1% in July.
„While the increase in housing prices and activity are driven by the current trends, they are also causing an increase in liquidity in the account and the higher interest rates, where housing prices are higher than the average incomes. This makes the taking of deposits a bigger challenge, says Bobt Gapdn, chief economist in the Nation.
And earlier this month, the mortgage editor predicted that house prices in the United Kingdom would continue to contract through the final part of this year and mortgage rates begin to fall due to the Bank of England's desire to reduce Sixteen percent. The bank cut interest rates from 5.25% to 5% earlier this month, which was the first reduction in four and a half years.
However, we must expect more reductions in the coming months, as the rate of inflation will not return to the high levels reached in the last two years.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE