Home prices down 15 percent in real terms in October: Data

ANKARA

The residential property price index (RPPI) rose by 26.8 percent annually in nominal terms in October, but home prices declined by 14.7 percent year-on-year in real terms, data from the Central Bank has shown.

The pace of increase of the index in nominal terms slowed from 27.4 percent in September.

The PRRI advanced 2.1 percent month-on-month in October, accelerating from the 1.03 percent increase recorded in September.

Home prices, in nominal terms, increased by 21.2 percent from October last year in Istanbul, while the annual increases in Ankara and İzmir, the country’s third largest city, were 32.5 percent and 28.7 percent, respectively.

The RPPI for new dwellings increased by 26.5 percent annually, accelerating from 26.09 percent in September. On a monthly basis, it rose 3.1 percent in October, after declining 0.59 percent in September.

In nominal terms, prices of existing dwellings exhibited an annualized increase of 26.36 percent, slowing from the 27.3 percent rise in September.

Home sales have gathered pace in the past months as real prices have been on the decline.

Sales rose 16 percent and 9.9 percent year-on-year in July and August, respectively. The annual increase in home sales surged to 37.3 percent in September.

Last month more than 165,000 homes changed hands, pointing to a staggering 76.1 percent increase from October 2023.