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No negotiation: why there is almost no room to discuss the price of a home in a real estate transaction - Infobae
Source:
www.infobae.com
December 12, 2024
The smaller difference between listing and closing prices reflects a more dynamic market, with declining supply, rising demand and greater precision in appraisals that drive more purchase and sale transactions.
By Jose Luis Cieri
Buenos Aires continues to be a market of opportunity and the value for purchase and sale operations has been confirmed
The real estate market is experiencing a notable change: the gap between listing and closing prices of transactions has narrowed significantly . This adjustment reflects a context of greater dynamism, driven by an increase in the number of purchase and sale transactions, a lower supply of properties and greater precision in real estate appraisals.
At the same time, those with savings or access to mortgage loans find unique opportunities to acquire properties in a market that is still recovering in values in the city of Buenos Aires and in Greater Buenos Aires (GBA).
Aggressive price reductions are no longer accepted as they were two or three years ago. Previously, prices could be reduced by 10% to 20% depending on the case, for both buyers and sellers.
Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, told Infobae that the decrease in the gap can be explained, in part, by a change in the relationship between supply and demand. “Two years ago, the city had 170,000 properties for sale, while the monthly average of transactions was around 3,000. Currently, the offer has been reduced to 100,000 units, while monthly sales have doubled that number, reaching 6,000 (according to the latest report on deeds from the College of Notaries of Buenos Aires),” explained the director. In turn, he stated that this “generates an increase in the absorption of properties: in four months, 24% of the total available is sold, compared to the 7% that was absorbed in the same period two years ago.”
This phenomenon is driving closing prices closer to the published prices. “The smaller difference between appraisals from different real estate agencies was also key to generating trust among property owners. Previously, list prices could be very far from closing prices, making it difficult for clients to trust the appraisals offered. Today, that difference has been reduced to 5%, in line with historical negotiation values prior to 2020,” said Magnin.
The segment reflects more sincere values in an economic context where the dollar is experiencing an unusual decline and inflation has also slowed significantly, key factors for the real estate sector.
Magnin also noted that “precision in appraisals is crucial in a market where supply is decreasing and demand is growing. Owners are looking for realistic appraisals that allow for sales, which improves market dynamics.”
The availability of mortgage loans (in November, those from the Javier Milei era exceeded those of Mauricio Macri ) also contributes to boosting the market, although still to a limited extent.
The adjustment in the price gap and the recovery of real estate activity consolidate CABA as a market of opportunity for the purchase and sale of properties, with expectations of sustained growth in the coming months.
Values fell 40% between 2018 and the end of 2023. However, since the beginning of 2024 they began to recover, with an interannual appreciation of up to 12% in neighborhoods such as Colegiales, Núñez, Recoleta, Villa Urquiza, Belgrano and Palermo.
Housing in the final stage of construction in Núñez, one of the neighborhoods that appreciated its value the most in 2024
According to Zonaprop, a used studio apartment has an average price of USD 100,000 , while a two-room apartment averages USD 122,898 and a three-room apartment reaches USD 169,057.
Taking October 2022 as a reference, the number of publications accumulated a reduction of 39.81%, which is equivalent to a decrease of 44,761 units between October 2022 and November 2024.
"This context, combined with economic uncertainty, encouraged property owners to relax their expectations to ensure quick sales in the face of possible devaluations of the peso or increases in interest rates," said Fernando Belvedere , from EFEBE Properties, who operates between Avellaneda and surrounding areas.
The reduced disparity between property appraisals has reinforced the perception of stability in the market, generating greater confidence among buyers by reducing uncertainty due to differences in valuations.
In Avellaneda, the price margin was also reduced when negotiating operations for the purchase and sale of apartments and houses
The closer approximation between list and closing prices simplified negotiations and drove an increase in transaction volume. Belvedere added: “Transparency in the values asked and offered facilitates agreements and reduces barriers to closing purchases and sales.”
Although there is a recovery in real estate values, this trend depends on factors such as economic policy, inflation control and interest rates. Economic stability is a key element to sustain this recovery.
Belvedere added: “In areas such as Avellaneda, the difference between the list price and the final negotiated price remains between 5% and 7%.”
In 2024, used apartments in Avellaneda have prices ranging from USD 1,500 to USD 1,700 per m2, depending on the location. Brand new properties reach prices of USD 1,900 to USD 2,100 per m2, driven by better amenities and more sought-after locations.
www.buysllba.com
Source:
Sin negociación: por qué ya casi no hay margen para discutir el precio de una vivienda en una operación inmobiliaria
La menor diferencia entre precios de publicación y cierre refleja un mercado más dinámico, con oferta en descenso, demanda en alza y mayor precisión en tasaciones que impulsan más operaciones de compra venta
www.infobae.com
December 12, 2024
The smaller difference between listing and closing prices reflects a more dynamic market, with declining supply, rising demand and greater precision in appraisals that drive more purchase and sale transactions.
By Jose Luis Cieri
Buenos Aires continues to be a market of opportunity and the value for purchase and sale operations has been confirmed
The real estate market is experiencing a notable change: the gap between listing and closing prices of transactions has narrowed significantly . This adjustment reflects a context of greater dynamism, driven by an increase in the number of purchase and sale transactions, a lower supply of properties and greater precision in real estate appraisals.
At the same time, those with savings or access to mortgage loans find unique opportunities to acquire properties in a market that is still recovering in values in the city of Buenos Aires and in Greater Buenos Aires (GBA).
Aggressive price reductions are no longer accepted as they were two or three years ago. Previously, prices could be reduced by 10% to 20% depending on the case, for both buyers and sellers.
Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, told Infobae that the decrease in the gap can be explained, in part, by a change in the relationship between supply and demand. “Two years ago, the city had 170,000 properties for sale, while the monthly average of transactions was around 3,000. Currently, the offer has been reduced to 100,000 units, while monthly sales have doubled that number, reaching 6,000 (according to the latest report on deeds from the College of Notaries of Buenos Aires),” explained the director. In turn, he stated that this “generates an increase in the absorption of properties: in four months, 24% of the total available is sold, compared to the 7% that was absorbed in the same period two years ago.”
This phenomenon is driving closing prices closer to the published prices. “The smaller difference between appraisals from different real estate agencies was also key to generating trust among property owners. Previously, list prices could be very far from closing prices, making it difficult for clients to trust the appraisals offered. Today, that difference has been reduced to 5%, in line with historical negotiation values prior to 2020,” said Magnin.
The segment reflects more sincere values in an economic context where the dollar is experiencing an unusual decline and inflation has also slowed significantly, key factors for the real estate sector.
Magnin also noted that “precision in appraisals is crucial in a market where supply is decreasing and demand is growing. Owners are looking for realistic appraisals that allow for sales, which improves market dynamics.”
The availability of mortgage loans (in November, those from the Javier Milei era exceeded those of Mauricio Macri ) also contributes to boosting the market, although still to a limited extent.
The adjustment in the price gap and the recovery of real estate activity consolidate CABA as a market of opportunity for the purchase and sale of properties, with expectations of sustained growth in the coming months.
Values fell 40% between 2018 and the end of 2023. However, since the beginning of 2024 they began to recover, with an interannual appreciation of up to 12% in neighborhoods such as Colegiales, Núñez, Recoleta, Villa Urquiza, Belgrano and Palermo.
Housing in the final stage of construction in Núñez, one of the neighborhoods that appreciated its value the most in 2024
According to Zonaprop, a used studio apartment has an average price of USD 100,000 , while a two-room apartment averages USD 122,898 and a three-room apartment reaches USD 169,057.
Less supply
According to the Real Estate Market Observatory of the Colegio Inmobiliario Porteño in CABA, there are currently 67,689 apartments published, the supply decreased by 4.08% in the last 30 days.Taking October 2022 as a reference, the number of publications accumulated a reduction of 39.81%, which is equivalent to a decrease of 44,761 units between October 2022 and November 2024.
What's happening in GBA
In 2024, the stabilization of inflation, although high when measured year-on-year, allowed for greater agreement between buyers and sellers on the value of properties for sale."This context, combined with economic uncertainty, encouraged property owners to relax their expectations to ensure quick sales in the face of possible devaluations of the peso or increases in interest rates," said Fernando Belvedere , from EFEBE Properties, who operates between Avellaneda and surrounding areas.
The reduced disparity between property appraisals has reinforced the perception of stability in the market, generating greater confidence among buyers by reducing uncertainty due to differences in valuations.
In Avellaneda, the price margin was also reduced when negotiating operations for the purchase and sale of apartments and houses
The closer approximation between list and closing prices simplified negotiations and drove an increase in transaction volume. Belvedere added: “Transparency in the values asked and offered facilitates agreements and reduces barriers to closing purchases and sales.”
Although there is a recovery in real estate values, this trend depends on factors such as economic policy, inflation control and interest rates. Economic stability is a key element to sustain this recovery.
Belvedere added: “In areas such as Avellaneda, the difference between the list price and the final negotiated price remains between 5% and 7%.”
In 2024, used apartments in Avellaneda have prices ranging from USD 1,500 to USD 1,700 per m2, depending on the location. Brand new properties reach prices of USD 1,900 to USD 2,100 per m2, driven by better amenities and more sought-after locations.
www.buysllba.com
