Is it time to sell your house in Cyprus now?

Now might be the perfect time to sell your house. You can expect a high demand, record-setting prices and low interest rates. All of which are likely due in part by this current shortage of available properties on offer! But don’t wait too long before putting it up for sale. These conditions may soon change again.

Keep in mind that this condition may pass

The demand for housing is higher than before. This means that there are more people who want to buy a house and less supply in the market. As this trend continues and competition among buyers becomes intense. With demand still outweighing supply, prices for real estate in Europe and Cyprus have remained stable this year. But this won’t remain a constant reality because of some other factors.

That’s why you should consider these aspects before making any decision in 2022:

1. The consequences of COVID-19

The government has implemented a moratorium on foreclosures up until October 2021. There have been very few cases of people losing their homes during the Covid-19 pandemic. This will soon change as COVID-19 comes to an end. Both Covid-19 pending foreclosed properties along with pre-Covid-19 pending ones become available for sale again. This will cause lower asking prices, a high number of available properties for sale and lower descending pressures.

The housing market in Europe and Cyprus has been stable this year. The demand for homes is higher than before. This means less supply among buyers competing with each other over limited properties on offer. To make prices remain at their current levels or even increase slightly as competition becomes intense. But this situation might not stay the same for a long time.

2. Change in monthly earnings and cost of living

The Cyprus economy is expected to see muted increases in average monthly earnings, with the cost of living remaining higher. With an anticipated drop in the real purchasing power, property owners will have a higher motivation than otherwise to liquidate their assets.

3. New Homes for sale!

4. The Reality of Baby Boomers vs Millennials

As the largest generation in history passes away, many will need to downsize their homes. Baby boomers (ages 58–75) make up a big share of this existing population. Hence, over the next ten years it is expected that there will be numerous deaths and moves between family members or friends with retirement homes.

If this comes true, with more of these homes entering the market each year. It is expected that there will be an over-demand for smaller properties since Millennials opt for smaller houses.

5. Interest rates increase and affordability deteriorates.

When interest rates are ultra-low, the cost of mortgage payment seems low and house prices seem more affordable than ever. When this changes (and it’s not a matter if), potential buyers will be reduced as their monthly payments increase progressively due to higher interest costs.

The housing market is not responding fast to the current economic climate. Prices will be continuing to rise. This poses major problems for those who want to buy or rent property without becoming underwater on loans payments!

The housing market is becoming increasingly competitive and the costs for mortgages continue to rise. This combination means that even those who might otherwise qualify are unable, which will result in lower applications overall.

The number of property sales in 2019 has broken records, with the highest levels seen since 2008. In 2021 10 thousand have been sold, a level which is very high.

2019 was the last year for a popular citizenship by investment program. In 2019, 10 366 people invested in total. It needs to be highlighted that this was also an active period, with new applicants coming onto programs regularly.

With the global pandemic still affecting people’s lives, it is expected that sales will remain high in 2022. However, with affordability worsening and interest rates about a rise, there may be less demand for products later this year than before.

Selling a home is always difficult, but with coronavirus it’s been especially so. The recent outbreak has made the decision more personal and complicated than ever before. Especially for those that need to sell in order to make better decisions about their properties!

Conclusion: Now could be THE TIME!

The best time to sell your property is when there’s an increased demand, record-breaking prices and low interest rates. But if you wait too long or coronavirus strikes, then things might be changing! The decision will always be personal, but some things are to consider before making this big decision.

Though the Cyprus economy is expected to see muted increases in average monthly earnings, with a higher cost of living and lower real purchasing power, it’s not impossible that property owners will be motivated more than otherwise.

We recommend that you take a look at this blog article, as well as other articles on the subject, so you can make an informed decision for your property and investments in the future.