The number of searches for homes for sale increased by 14% in July this year compared to June and by 15% y-o-y, according to Otodom data. At the same time, consumer demand has encouraged sellers to list properties for sale, with the base of available listings increasing by up to 20% year-on-year in some regions.
“There is growing interest in homes for sale. In July, potential buyers of this type of property searched for them 15% more often than a year ago. Small four- and five-room houses, whose prices fall within the limit of the 2% Secure Credit programme, i.e. up to PLN 800,000, are gaining in popularity. However, there is also growing interest among consumers in more expensive homes in amounts up to 1.5 million and above. At the same time, consumer demand has encouraged sellers to put properties up for sale, and in some regions the base of available listings has increased by up to 20% year-on-year,” according to Otodom.
“The increase in demand in the segment of homes for sale is the result of a general recovery in the property market, linked in part to the loan subsidy programme. Indeed, on the one hand, we are seeing growing interest in homes priced to meet the limits of the 2% Safe Credit programme. However, on the other hand, Poles are also increasingly looking for more expensive homes. This indicates that cash buyers or those with higher creditworthiness are now also considering buying this type of property,” Otodom senior analyst Karolina Klimaszewska commented.
Compared to last year, potential buyers are more likely to look at houses with a smaller footprint. In July, almost 40% of searches for houses concerned those with a minimum area of 76-100 sqm, while those exceeding 150 sqm accounted for less than 14% of searches. The trend is also reflected in the preferred number of rooms. Indeed, four- and five-room houses are gaining the most popularity among potential buyers, searches for which accounted for 43% of all adverts in this category in July, it was also reported.
“Given the limits of the ‘2% Secure Credit’ scheme, it is not surprising that searches for smaller homes with a total price within the permitted amount have recently increased. We can expect this trend to intensify in the coming months. Buyers interested in taking up the offer of a loan with a government subsidy will continue to look for properties with a smaller footprint with a number of rooms that will enable them to function comfortably in a relatively small space,” Klimaszewska also said.
Otodom points out, however, that houses for sale priced between PLN 1-1.5 million are also more popular than a year ago ( +1.5 percentage points year-on-year in the share of searches by price range).
“The high level of inflation and the cost of construction are likely to redirect the attention of some people who were planning to build a house on their own towards buying ready-made properties. At the same time, the greater number of offers available than a year ago and the increased availability of credit are encouraging buyers with higher budgets to look for homes for themselves,” added the Otodom expert.
Buyers who were planning to finance their home purchase with the help of the 2% Safe Loan scheme had plenty to choose from. In July this year, almost half of the active listings of houses for sale on Otodom qualified for the maximum limit of the programme, i.e. PLN 800,000. Consumers with a smaller budget, up to PLN 600,000, had nearly 26% of the 68,000 listings available. On the other hand, houses for sale within the limits of PLN 600-800 thousand accounted for more than a quarter of the available offer.
However, not in every region of Poland did potential buyers have an equally wide choice. In July, the largest number of houses for sale was available in the Mazowieckie Voivodeship (over 12,000), Śląskie, Wielkopolskie and Dolnośląskie Voivodeships (7-8,000). On the other hand, those interested in buying this type of real estate in Świętokrzyskie, Opolskie and Lubuskie faced the smallest number of offers.
“Interestingly, compared to last year, in some regions of the country the base of available houses for sale has significantly increased. In provinces such as Warmińsko-Mazurskie, Opolskie and Lubelskie, it increased by nearly a fifth year-on-year. This may indicate that home sellers in these regions are pinning high hopes on the first-time buyer loan subsidy programme, the report concluded.
Source: Otodom and ISBnews
