The current real estate market is increasingly characterized by the contrary situation – the desire to buy is great, but there are fewer and fewer suitable offers.
Most people are looking for large, high-quality apartments for their home and more exciting, special living spaces for investing. Although the decrease in offers at the beginning of the year is normal, the number has dropped by about 20% compared to the same period last year, and the period of decline started already in the last months of last year.
Uncertainty inhibits sales decisions
The first reason is uncertainty about the future. People do not dare to sell, because the health crisis and everything that comes with it creates insecurity.
Another reason is the lack of interest of investors to sell their apartments. The first fright on the rental market has been overcome and long-term tenants have been found in the apartments that so far offered short-term accommodation.
Thirdly, there are some questions about whether there is anything new and interesting to buy for the money received from the sale of existing living space.
Purchasing interest is growing
When sellers are intimidated by uncertainty, those interested in buying are increasingly willing to invest their existing money in real estate, increase their existing portfolio or start a rental investor lifestyle. Of course, home seekers have not disappeared either, and large families, who are looking for a better quality living space, stand out among them.
In addition, more and more Estonians or foreigners who have returned to Estonia from abroad can be seen among the buyers, who find that Estonia is a great place to live and the local corona restrictions are milder than in the home country.
There are also many who want to invest their existing money in fear of inflation. It is clear, that keeping money in a bank account will not pay off anymore.
Finally, it is worth mentioning that although the demand for good apartments is high, it does not necessarily mean a rapid rise in prices. Buyers are also considerable in their decisions and take into account all the possibilities that the current difficult times may bring.
Heidi Kivirand, broker of Uus Maa Kinnisvarabüroo