Falling home prices increase property sales
Contracting house prices have yielded increased sales for property realtors as the falling prices equal up to potential buyer costs.
Data from the first quarter housing price index by the Kenya Bankers Association (KBA) concluded home sales between January and March rose by 14 percent driven in large part by a pick-up in demand.
This as house prices continued to plummet for the fifth consecutive quarter with the latest decline sitting at 0.54 percent in comparison to 0.61 in Q4 2019.
“The marginal easing was supported by the supply-demand interaction with a leaning towards nore demand on a relative context,” notes the index.
KBA Director of Research and Policy Jared Osoro says the housing market is approaching a demand-supply equilibrium as prevailing house prices become the normalized along with returning demand.
“Taken together, the shift in trends reflects buyers’ adjustment as affordability remains a crucial concern in the housing market,” he said.
“The decelerating price growth trend is evidence of a property market with a distinct lack of momentum and characterized by a sign of normalization of house prices at the markets comes into balance after a prolonged period of sustained price growth.”
Town houses became the most demanded home units in the period breaking the trend in preference from apartments as home buyers opted for low-density buildings.
Town houses accounted for 45 percent of recorded sales in the quarter ahead of apartments and bungalows.
78 percent of all transitions were recorded in the index’s region two which includes Thindigua, Kiambu, South B, South C, Kabete, Komarock and Langata.