Why prices aren’t going further down?

The apocalyptic predictions for total collapse of the property market did not come true, although commercial banks have done everything in his power in this respect, say brokers. Loans from the beginning of the year were hardly given, except for certain long-negotiated and units outstanding. However, prices fell significantly, which has very fundamental reasons.

Prices of construction materials are not dropped, but rather - some went up. The only exception was the iron, but many builders have long ago minimized its use as building with new systems and materials. Therefore, the decline in the price of that material does not significantly affect the final product. The expense of iron products such as tiles and ceramics used in mass finishing, increased prices of imports and national production as well, say experts.

There is no logic for properties to go much cheaper; having in mind that nothing else is getting cheaper. Neither did the cost of services, or equipment or technology, nor food, went down except for some seasonal goods. Only cars marked a slight decline in certain promotions. Therefore, no logic, property prices, which are an essential investment for the Bulgarians, to fall significantly.

Nobody wants to decrease the profit of his investment. This rule is a leading one for all native owners of a property. It must be kept in mind that many people buy up houses for investment of funds and quick profit and then a few months to a year before the crisis. It turned out that agents are willing to sell at prices lower than those that are bought. The Bulgarian do not like to lose and it largely prevents crashes.

Bad loans have proved to be less. People who have difficulty paying their loans, have proved to be much less than expected. Unlike Europe and the U.S. mortgage crisis. The percentage of bad mortgage loans is well below 5, and this is considered an acceptable value of the bankers. Therefore, there were no mortgaged properties much on the market.