Cocktail of buying intentions causes real estate prices to spike!

Cocktail of buying intentions causes real estate prices to spike!

There has been a lot of talk in the news lately about real estate and its still-rising prices. Indeed, currently there is a "cocktail" of different types of prospective buyers on the market that is causing an unprecedented "boost".

The first type of candidate buyers are the people who, as a result of the corona crisis, have come to realize that they would like to have, for example, a larger garden or an additional workplace. Many people have therefore entered the real estate market to improve their own housing situation.

At the same time, the interest rate on mortgage loans remains very low and many first-time buyers are looking for their first home. With the low interest rate, it is indeed the moment.

And as if there were not enough "pressure", investors have also become very active again on the real estate market. Their confidence in equities has taken a knock due to the volatility of the corona crisis. Investors are therefore once again looking for a safe investment in real estate.

These three types of prospective buyers are creating an enormously strong demand for real estate and each has its reasons for rushing into it. First-time buyers fear that in the future it will become less and less (financially) feasible to buy a home and therefore they want to be quick. The "corona buyers" want to have a more comfortable home as soon as possible to endure the new realities of working from home and quarantines.

And the investors are tired of getting no interest at all on their savings and want to invest as quickly as possible under the motto: "In the bank it won't yield anything anyway."

This "cocktail" of strong purchasing intentions and at the same time a relatively small offer, have caused the explosive sales prices on the current real estate market.

There are currently many property owners who see this as the ideal time to sell their property. The sales prices are "peaking" and it has been predicted for some time that the sustained price increase cannot last ... .

To be continued?

Are you considering selling your property and would you like a "no strings attached" estimate? Feel free to send us an email at hello@kasperkent.be and one of our brokers will contact you.