TURKISH HOUSEHOLD CUT THEIR COAT ACCORDING TO THEIR CLOTH WHEN IT CAME TO BUYING HOUSES
It was stated that Turkish household took the economic data and cycles into consideration and adjusted their budget accordingly when purchasing housing. Based on the 3rd quarter home sales statistics, announced by Turkish Statistical Institute, 293 thousand 318 homes changed hands in Turkey between the months of July-September. Istanbul had the largest share with 18.4% in 54 thousand 34 home sales. Ankara followed that with 11.7% in 34 thousand 269 home sales. Izmir ranked in third place with 6.1% in 17 thousand 940 home sales. The least sales happened in Hakkâri with 24 sales.
Prof. Dr. Hakan Yetkiner, Vice Dean of IUE Faculty of Business and Lecturer at Department of Economics, who assessed the issue of homes changing hands, mentioned that such sales and purchases were indicators of the economy’s stamina, and that the households made their purchases based on their incomes. Prof. Dr. Hakan Yetkiner stated that Turkish people paid close attention to the economy and mortgage sales decreased during this period.
‘The folks are responsive to interest rates in home sales’
Prof. Dr. Yetkiner stated, “Mortgage interest rates experienced its lowest terms in the second quarter. The monthly percentage was between 0.63 – 0.65. When the news regarding the decisions to be made about the liquidity in USA broke out, the interest rates experienced an increase which later reflected to mortgage interest rates. While there was an increase in sales with loans in the second quarter, those figures decreased in the third quarter, as the home sales increased. This gives us the message that Turkish households are responsive to interest rates in home sales”. Prof. Dr. Yetkiner pointed out that when the interest rates increased the people used their own savings to deal with sales and purchases, and this indicated the fact that Turkish people followed the economic data very closely.
The sector has great expectations of 2014
İbrahim Evdüzen, Real Estate Counsellor, who is a graduate of Izmir University of Economics-Department of Economics, also stated there was a decrease in mortgage sales and the sector was experiencing a rapid market compared to spring or summer period. Evdüzen stated “The interest rates in June, which were 0.65, increased up to 0.95. During this period, the buyers preferred to use the ready cash. However, a decrease in loans is expected towards the end of the year. We expect to see an increase in loan sales. We expect an increase in the first and second quarters of 2014. Urban transformation also gained speed. Brand new buildings are being built. I believe that these will accelerate the process.”
