In Irkutsk, apartments have become much cheaper. Compared with September 2008, prices on the secondary market have fallen 20 to 30 percent, but there is still no rush in demand. The article examines district differences and the reasons for the decline, a sharp drop in mortgage lending and buyers waiting for the price bottom. Realtors say this may be the best time to buy property for those with cash.
Apartments in Irkutsk have become cheaper, but there is no rush demand for them. The number of transactions in the secondary housing market in Irkutsk has fallen threefold compared with September 2008.The price per square meter on the secondary housing market in the Kirovsky District is now 50-52 thousand rubles, and in the Oktyabrsky District – 48-50 thousand rubles. The number of listings in the Kuybyshevsky District is traditionally small, and apartment prices here vary significantly depending on the location. Cheaper apartments can be found in the Rabocheye, Radishchevo, and Marata suburbs – the price per square meter here does not exceed 43-44 thousand rubles. Apartments in the central part of the district are noticeably more expensive: on Dekabristov Square, Krasnogvardeyskaya Street.
A similar range of prices is observed in the Sverdlovsky District of Irkutsk. The most sought-after, and therefore more expensive, apartments are in the center of the district: from the Raysovet stop to the Firefighting School and Akademgorodok. Here, the price per square meter of living space is the same as in the Oktyabrsky District: 48-50 thousand rubles. Apartments in the Sinyushina Gora, Yubileyny, and 3rd GES Settlement microdistricts are considered less prestigious – 45 thousand rubles per sq. m.
The cheapest housing in the regional center remains in the Leninsky District. Here, the price per square meter stays within 40-42 thousand rubles.
Current prices differ from September prices by 20-30% downward. So why is demand for apartments so low? A number of factors contribute to this. One of them: the number of banks in Russia issuing mortgage loans decreased in the second half of 2008, compared with the first half, by 20 times. This was reported by ASR Vice President, chairman of the council of the National Association of Mortgage Market Participants (NAUIR) Vladimir Ponomarev.
"Starting from the third quarter of 2008, a stable trend emerged toward a reduction in the volume of mortgage housing lending in Russia. The number of banks issuing mortgage loans has decreased almost 20-fold," he noted. According to Ponomarev, mortgage programs are currently operating in only 15 banks in Russia. "At the same time, 80% of the volume of mortgage lending falls to the five largest, mainly state-owned banks," he pointed out. Ponomarev added that the most negative factor affecting Russia's mortgage market at present is the absence in the country of a system for refinancing mortgage loans.
Another reason, according to experts, is that city residents have frozen in anticipation. Buyers are waiting for the "price bottom," but experts warn: it can be "missed." Realtors recommend: now is the most favorable time to buy real estate; if you have "live" money at your disposal, you can bargain and set your own terms.
The end of the financial crisis will most likely be marked by a sharp jump in real estate prices. They will be able to catch up with and surpass the previous price level much faster than they fell: in 1-1.5 years.