Falling prices and low demand. Italian realtors on the real estate market's trends
01/06/2023, 17:30
The Central Bank of Italy shared the results of the first quarter of 2023 in the local real estate market. The bank regularly conducts surveys of realtors to find out the current situation. This time, it conducted a survey among 1,458 real estate agents.
Here are the main findings:
- Housing prices are still stable, but many agents are predicting a decline. In general, market players are pessimistic about the prospects, not expecting a new upswing.
- The percentage of agents who have closed at least one deal is declining, although it remains high (down to 84.2% of agents in the first quarter of 2023, compared with 87.8% in the fourth quarter of 2022).
- In the rental sector, the opposite trend is occurring—prices are rising rapidly. Approximately one in two agents report this. This means that rents should theoretically increase.
- Demand for real estate remains weak. The main reason is the difficulty in obtaining credit for many potential buyers. This problem is reported by almost every third operator.
- The average selling time has decreased from 6.1 months to 5.5 months. However, it is still quite a long time. At the same time, it provides bargaining and negotiation opportunities.
- According to most agents, the expected trend of consumer inflation in the coming year, although it will decrease compared to the previous period, will continue to have a negative impact on the demand for housing.
Author
Yuliya Yanukovich
Editor-in-chief
I am responsible for editorial work. I write expert interviews and guides.