Association of Entrepreneurial Real Estate Agents (TÜGEM) Vice President Dr. Mustafa Koçak said: “There has been a major increase in house prices in the last 1.5 to 2 years. Purchasing power fell, interest rates on loans rose, and people began to be unable to buy a home. Buying a house is now a dream. Because as of today, banks have completely closed both lending and credit taps. I think that if an environment of trust is not created after the elections, the market will stagnate even more, ”he said.

Saying: “I expect a decrease in the rate of price increase,” Koçak said, “However, the price decrease will not happen in the next period. Of course, we will see how far this will go,” he said.

‘UNTIL APPROVED LOANS ARE RETURNED’

Dr. Koçak said: “State banks give loans with low rates, but when you go to the bank, you can only use loans with a very low limit, like 250-300 thousand lira. This requires serious cash. And because people don’t have that much cash, they can’t go buy it,” he said.

Emphasizing that banks have completely closed both lending and credit taps, Koçak said: “There are scenarios where even approved loans are rejected. This will bring a serious stalemate, ”he said.

DECREASE IN STOCK, DECREASE IN NEW BUILDING LICENSES

Explaining that there are many factors in declining home sales, Koçak summarized them as follows:

“Prices have risen a lot due to inflation. However, there is a contraction in stocks. There is also a decrease in the number of applications for building permits. This shows that new construction is declining.

Of course, construction costs also have an effect in decreasing new construction.

And as you know, there was an earthquake in February. With the effect of the earthquake, there was a movement of the old buildings, but what did they do when the people who lived in the old building could not buy a house in the new building and did not cover those costs? They began to trend toward rent. This has seriously increased the already rising rents.

‘MAY SALES WILL STILL DOWN’

“After the announcement of the election, it was announced in mid-March that the election would be on May 14. This, of course, brought a stalemate in April,” Koçak said, continuing as follows:

“I predict a further decline in sales in May. Because the elections did not end in the first round on May 14. It is May 28. The expectations still continue. Waiting for the elections. Therefore, there is not much activity in May. It won’t be until the end of the month. With their loans closing and loan interest rates rising, it has already become impossible for people to buy a home on loan.” (PHOENIX)