In spite of Real Estate price increases Here’s Why You Shouldn’t Refrain from Buying a Home
Lower interest rates for home loans are still the main factor making sales. And a report that recently documented the volume of home sales shows that the optimistic mood has outshined the 2021 forecast.
When the country started to fend off the lockdown in March 2020, virtually nothing seems to have persuaded buyers to buy their dream homes. However, things changed in the direction of positive change by the year’s end in 2021.
In 2022, it was evident that the year was gaining momentum that was accompanied by a positive buyer’s sentiment to bring the industry back to its full potential. The rapid rise in sales from 2020, which experienced the full effects of the pandemic. sales dipping to a negative 37 percent per year as contrasted to the same period in the year prior.
“The sentiment of homebuyers has been influenced by the developer’s experience. The buyers are buying houses but only from Grade A developers who have fulfilled their promises and have handed homes over to buyers in time. Now all developers need to keep their faith in the process.” Jay Pandya. The increase in sales also led to the reduction of inventory for Q2 2022 by 4 % in all seven major cities according to one Research.
What is the reason for the sales occurring?
- People are saving up their hard-earned cash to get the best deals
- Interest rates for home loans are less than the pre-pandemic rates in spite of the cumulative increase of 90 bps on the repo rate by the RBI
- The positive outlook for purchasing has also been caused by an increase in salaries.
What are the numbers telling us?
- The highest number of sales can be seen in the category of Rs 50 lakh.
- However, luxury homes will never be out of style.