Housing sellers will crash if they do not reduce prices - experts

According to the forecast of the Institute of Globalization and Social Movements (IGSO), cottages, townhouses and apartments do not find buyers, since housing prices in Russia are decreased more slowly than a weakening of demand. This was reported by the website vseposelki.ru .

"The expectant policy of sellers at the initial stage of the crisis will result in 2009 by the fact that the bulk of the real estate will remain unsaturated. Players in the housing market will crash an unprecedented scale," the ISSO specialists said.

According to them, discounts on the declared real estate prices are 20-35%. "The current situation is a pause before a large fall. Who will not have time to sell housing in December -January, he will be forced to sell it later for nothing," said Vasily Koltashov, head of the Center for Economic Research by IGSO. According to him, reducing prices by 55-65% in 2009 "will no longer be enough."

"The state will not be able to purchase all accumulated houses and apartments at overall prices," the study says. "It is possible that by the end of 2009 housing prices will be reduced several times," say experts who recalled that "the collapse of the housing market in Russia was predicted by the CEE of IGSO in April 2008."

"Analysts of construction and real estate companies together claimed: real estate will only get drunk. As a result, without going to a moderate decline in prices in the summer, housing sellers missed the opportunity to realize the available houses and apartments," the IGSO notes.