Turkey’s home sales fell by an annual 16% to 119,574 units in October. On a month-on-month basis, the decline was also a mouthful 12%. Turkey’s home sales had peaked in July with 229,357 units along with the AKP’s push for growth via cheap state bank loans. It since than dropped by an almost half to 119K units as of October.
The third-straight month drop in October comes as the interest rate hikes hit demand for mortgages while the AKP government had to end the stimuli for the housing sector amidst deteriorating public accounts. Turkey’s central bank almost doubled the average cost of funding for banks to 14.6% as of last week from 7.5% in July.
Purchases of homes via mortgage lending slumped by an annual 49% in October to 25,566 units; a string slowdown from the July level of 130,721 units.
The number of houses sold for the first time slid by an annual 26% percent in October to 36,976 units.
Second hand house sales in Turkey became 82 thousand 598 by decreasing 10.8% compared to the same month of the previous year.
This week’s (November 19) MPC is expected to yield 200-450 basis points rate hike according to market expectations. If materialized, it will further pull down home sales in Turkey into 2021.