hoarding and marathon sales; Two basic challenges of the housing market – Tejaratnews
According to Tejarat News, housing prices have increased from city to city and no one can afford to buy a house anymore. If until yesterday it was possible to buy a house with bank facilities, today many people take loans to be able to pay the housing deposit and rent. If they can’t afford it, they prefer to leave rather than stay, rent a smaller house, change their neighborhood or even move from one city to another.
The increase in housing prices due to price jumps in parallel markets
In an interview with TejaratNews, Baghzian stated: “Besides the increase in the cost of housing and the increase in land prices, there are many reasons for the high cost of housing, and in any period one of those reasons plays a greater role; When different markets compete with each other in parallel price increases, housing prices also increase. For example, one day the price of housing per meter was 50 million, and at the same time, the dollar was 5 thousand tomans. Now this house, which is still worth 50 million tomans per meter, is looking at the increase in the dollar rate, which has reached 50 thousand tomans, so the housing market is asking for a price increase.”
He continued: “There is a time when the dollar remains stable and instead the price of the car increases; The owner says to himself, I have a house that is worth two billion, but now the price of a Lexus car is two billion. The owner thinks that if someone sells a Lexus, he can buy my house, in return, I will increase the price of the house. On the other hand, the car owner in this situation says that until yesterday I could buy a house by selling the car, so today I have to buy a house by selling the same car, so it increases the price of the car and it continues like a cycle! When the car becomes more expensive, the spare parts become more expensive, because that spare parts seller believes that when the car becomes more expensive, I shouldn’t sell the side mirror cheaply, that is, a marathon starts because no one wants to sell their goods cheaply.
Falling dollar price does not lower housing prices
This university professor also said: “It’s interesting that when the price of the currency goes down, neither cars become cheap, nor spare parts, nor housing, and unfortunately everything is connected! This connection was due to the fact that the government was very optimistic and sometimes people who seek profit in these markets have people in the government; Is it possible to appoint a minister or the head of an organization to destroy these empires? Of course, it is almost the same all over the world, and these groups try to have people in different powers to protect their interests. Government supervision is important here; “They should go and study the experience of Germany, France and America, the problem has been solved there.”
Baghzian further stated: “They were able to with the help of the tax system and without the government selling land, that is, instead of giving the ownership to the dowries’ housing, they said, “I will build housing and you sit and pay rent; “When the government gave ownership of land and houses to individuals and groups, they will later sell that housing at the market price and prices will increase again.”
Rent increases with housing prices
Baghzian said about the relationship between rent and housing prices: “House rents increase with housing prices. When the house price rises and does not sell, the owner looks to rent, and those who cannot buy a house due to the increase in prices, look to rent a house. are, therefore, rising rents are a sign that people no longer have the power to buy houses, and sellers are not willing to sell houses either.”
And he added: “In the world, they monitor these cases, they make policies so that the price of renting a house is clear; Someone who rents a house, the owner cannot easily break the contract, and someone who has an empty house will be taxed as much as he should have rented it, so the owner tries to have a resident house and does not seek to buy a third or fourth house. ; “The existence of empty houses that the owner neither rents nor sells is a kind of hoarding.”
Baghzian stated: “Parallel markets go together instead of cutting each other off, that is, the price of the currency cannot go up, the price of the house cannot increase, and then the price of meat and chicken must not increase, the government must control this situation; When some people said that the price of the dollar should fluctuate, i.e. the currency should float and let the market determine its price, it was a betrayal to the rest of the markets and the people, because with the increase in the price of the currency, the price of dollar-denominated products increased, and the price of those goods, such as Housing is not movable because it wants to maintain its value. Therefore, the housing issue has not been resolved yet.”
The role of online platforms in housing prices
This university professor said about how platforms play a role in housing market prices: “Platforms were created in every market to make information more transparent; This platform is low-cost for those who are applying for sales, and buyers have easier access to their needs; Therefore, physical places such as stores and storefronts were abandoned, so the middleman between the buyer and the seller was eliminated and the costs were reduced.
He continues: “When these platforms become dangerous when some people are the leaders, these leaders are none other than the same enterprises, or those who have a high number of houses and abuse the trust created in these buying and selling platforms; By listing unreasonable prices, people who want to put a reasonable price on their housing or car for sale are influenced by those unreasonable prices and therefore list the price of their product higher than the real value.
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