Economy, Business And Markets

Small Shift in Housing Market

Small Shift in Housing Market Small Shift in Housing Market

The last two weeks witnessed a perceptible change in the housing market, following an increase in public demand for homes. Most home dealers are attributing the shift both to “public reaction” to the nuclear deal signed between Iran and the world powers on July 14 and the end of the holy month of Ramadan, which usually marks a trough in house purchases and rentals.

An analysis by Donya-e-Eqtesad newspaper indicates that the number of people showing up at real-estate agencies to inquire about homes has risen dramatically. The report also reveals that a segment of homebuyers are not interested in investing in the one-year mortgage saving account, deeming it too long a waiting period. This has caused a renewed surge–however temporary—in selling and purchasing homes.

Data released by Tehran Association of Realtors suggest that the slowdown in house purchases this spring compared to a year ago have narrowed in the last two weeks. While home purchases marked a 20% drop this spring compared to last year, the last two weeks recorded a 15% decline.

The latest report from the mortgage saving account also reveals a decline in the number of depositors, which could indicate impatience for buying homes.

The propitious shift in the housing market, however, is still far from a definitive end to stagnation in that sector. Most inquiries made at real-estate agencies have not yet materialized into actual home purchases.

But home dealers and real-estate investors are stubbornly hoping for an ultimate thaw in the housing market.

“Both buyers and sellers are determined to sign deals and since there has been a sluggish demand for homes in the last couple of years, an oversupply of houses await buyers,” said Hesam Oqbaei, head of Tehran Association of Realtors.