The number of real estate transactions this summer is down 20% year-on-year, say companies in the sector, cited by bTV. At the same time prices are not going down at all.

Home prices in several main cities have soared by more than 25% in just six months. Inflation since last July is at a little above 14%, while real estate appreciation for the same period stands at 40%. This makes the market even more attractive as people are trying to safe proof their money from depreciation by investing in properties.

Brokers say it is becoming more and more difficult to make prognoses as the market is rather influenced by rumors and expectations than by the real economic conditions. “Another factor that ups home prices is the appreciation of construction,”Lachezar Iskrov from the National Real Estate Association said on bTV.

The Association's latest analyses shows that availability is currently higher than demand. In Sofia, for example, the offering of 2-bedroom apartments is 45% higher than demand for such. Many properties are staying on the market unsold for long periods of time.

The only segment where prices are falling is that of vacation houses, where prices are down 20% due to oversupply.

This will not affect the overall home market, where the price hike is expected to come to 15% this year, Iskrov said.

Source: bTV, Photo: Profit.bg