ECONOMY

Home buyers opting for cheaper older properties

Residential property prices are showing signs of decline due to the drop in demand for new homes in favor of older ones, data compiled by the estate agent network RE/MAX International Inc indicate. A report concerning sales via the network in the first six months of this year shows a 15 percent price drop compared to 2009, while transactions through its agents across Greece were down by 11.6 percent year-on-year. This signifies ‘a rather mild adjustment in real estate demand,’ the report suggests. RE/MAX noted the rise in demand for older houses, as across the country almost nine in every 10 properties sold from January to June 2010 were used dwellings, while in Attica alone the ratio of used homes sold to newly built ones was 8:1. Remarkably, some 43 percent of residential properties sold through RE/MAX were at least 30 years old, illustrating a clear shift by buyers toward older houses, which are more affordable.