Apartments don’t disappear so quickly anymore. Sellers have a problem

May did not bring any major changes in the prices of second-hand apartments in the largest Polish cities. Analyzes by the GetHome.pl website show that average rates per square meter remained at a similar level to April’s. The exception was Łódź, where a slight price increase was recorded, and the Tricity, which was the only one to record a slight downward correction.

In Warsaw, the average price per square meter remained at approximately PLN 18,200. zloty. It was also stable in Krakow, where an average meter cost about PLN 17,000. PLN, as well as in Poznań and Katowice. In Wrocław, after previous declines, the market also entered a stabilization phase.

– On the one hand, the availability of loans is still improving compared to last year, but on the other hand, creditworthiness has been deteriorating in recent months, and some buyers are postponing their decisions again. The result is a growing offer and a decreasing number of apartments disappearing from the market – notes Marek Wielgo, an expert at GetHome.pl.

Increasing differences between cities

Although the situation on a national scale seems stable, data shows that local markets are increasingly different from each other. On an annual basis, the largest price increase was recorded in the Tricity, where apartments are on average about 6%. more expensive than last year. In Warsaw and Poznań, the increases amounted to approximately 2 percent, respectively. and 3 percent

In turn, in Łódź, prices have practically not changed over the last 12 months, and in Wrocław they are currently lower than a year ago by about 4%.

– This shows that the secondary market is increasingly spreading out locally and is no longer reacting with one rhythm. More and more depends on the local supply-demand ratio, comments Marek Wielgo.

The number of offers is increasing, but sales are decreasing

Experts from the GetHome.pl website point out that the situation on the supply side is becoming more and more interesting. Data from the real estate portal search engine Adradar show that in May the number of new apartment offers increased by 3%. relative to April. At the same time, by 9 percent the number of ads disappearing from the market has decreased, which may indicate a smaller number of transactions.

According to analysts, this is a signal that owners are increasingly deciding to put their properties up for sale, while potential buyers are acting much more cautiously than a few months ago.

– This reversal of the previous trend is one of the most important signals coming from the secondary market. Owners are more likely to decide to sell, while buyers are more cautious. As a result, the time needed to find a buyer increases and competition between offers increases. This is also visible on an annual basis. Although the number of apartments available on offer is still smaller than a year ago, the rate of offers “disappearing” has decreased even more, which means that the demand has clearly weakened, notes Wielgo.

Buyers negotiate, sellers wait

In most large cities, the number of apartments available on the secondary market increased compared to April. More offers appeared, including: in Warsaw, Wrocław, Poznań, Łódź, Katowice and Tricity. Only Kraków recorded a slight decrease in the number of advertisements.

Experts emphasize, however, that despite the recent increase in supply, the offer is still significantly smaller than a year ago. This limits the risk of sudden price drops, but at the same time does not provide grounds for further price increases.

– However, this does not change the fact that in all analyzed metropolises the offer remains clearly lower than a year ago. In Warsaw it is a decrease of approximately 18 percent, in Wrocław approximately 23 percent, in Kraków approximately 20 percent, and in Łódź approximately 14 percent. Smaller differences can be seen in Tricity and Poznań (approx. 7 percent each), and the smallest in Katowice (approx. 4 percent). On the one hand, this limits the pressure on price declines, on the other – with weaker demand, it is no longer enough to increase prices – analyzes an expert from the GetHome.pl website.

May confirmed that the secondary market has entered a stabilization phase in which neither side has a clear advantage.

– On the one hand, there are more apartments for sale, on the other hand, buyers are becoming more and more cautious when making decisions. In such a situation, the role of negotiations increases and the possibilities of raising prices decrease, notes Wielgo.

Developers’ offers tempt customers

An additional challenge for apartment owners is strong competition from developers, who continue to offer a wide selection of new premises and increasingly tempt customers with additional bonuses.

– If the advantage of new offers over sales continues, the pressure on prices will gradually increase. For now, however, the market is drifting rather than changing direction – sums up the GetHome.pl expert.