In a notable shift within the real estate market, experts have observed a significant rise in installment-based home purchases. The DIM group of companies’ analysts reported that as of March 2024, installment purchase agreements made up 95% of all home sales, marking an increase from 85% the previous year, and significantly higher than the 70% witnessed before the war period. The varieties of installment plans that have garnered the most interest among buyers include programs with zero interest, long-term developer installment plans extending from three to five years, initial installment payment plans with the first payment deferred for up to three months, and the eOselya program for apartments that are ready for occupancy.
Further delving into the composition of these purchase agreements, analysts have found that 50% of current contracts are being initiated with a 20-30% down payment of the property’s value, a notable hike from the previous year’s 35%, and substantially higher than the 15% documented in March 2021. Meanwhile, the current market sees 20% of transactions taking place with a 10-20% down payment. Notably, there has been a decrease in the popularity of deals with a 31-50% down payment, which have dropped to just 10% of the market share compared to the 35% they occupied during the pre-war era.
FAQ Section
- What percentage of home purchase agreements were made on installment terms in March 2024?
- How have the trends in down payments for home purchases changed?
- What types of installment programs are most in demand?
As of March 2024, 95% of home purchase agreements were made on installment terms.
There has been a significant increase in the frequency of home purchases with down payments of 20-30%, which constitute 50% of the agreements, as opposed to only 15% in March 2021. Trends also indicate a decline in deals with 31-50% down payments from pre-war rates.
The most popular installment programs include zero-interest plans, 3-5 year long-term plans from developers, installment plans for initial payments with deferral, and the eOselya program for ready-made apartments.
Conclusion
The trend in home purchases has shown a clear shift towards installment payment agreements. This change reflects buyers’ growing preference for flexibility in managing their finances when investing in real estate. With the majority of agreements now including installment plans, especially those with lower initial down payments, the property market is accommodating a range of financial circumstances more than ever before. Moreover, these insights could serve as valuable indicators for prospective buyers, real estate agents, and market analysts when making informed decisions about future investments and market trends in the housing sector.
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