What does the dollar fuel the housing market / the rise of the currency do to property prices? – Tejarat News
According to Tejarat News, there is a traditional rule that tells about the impact of the dollar price on housing, but it cannot be said that this factor is the only driver of the increase in housing prices, but other factors such as inflation, the price of construction materials, the price of land and the wages of workers are also influential in this case.
Since August of last year, with the beginning of the 13th government, the dollar and housing have both experienced an unprecedented price increase under the influence of various factors, especially news and political movements. This trend is still maintained and has brought the prices to the peak.
Dollar and housing trends since August 1400
In August 1400, according to the statistics of the Central Bank, the average housing price was 30,970,000 tomans, and the dollar ended its path in this month at the price of 27,600,000 tomans.
From this date until November of this year, in all months, the dollar and real estate have experienced an upward trend. In October 1400, both markets were declining. In Azar 1400, however, a slight divergence can be seen between the two markets, in such a way that the price of the dollar has decreased slightly and the price of housing has increased.
In February 1400, despite the return of the dollar to a lower channel, housing prices continued to rise, and in May 1401, the same procedure was followed.
Markets fall into recession at the beginning of the new year, and probably the significant increase in demand in May has caused the average housing price to increase despite the drop in the dollar price. In February of last year, a similar process was followed and the increase in the number of demands had a dominant effect compared to the decrease of the dollar and increased the price of housing in general.
Does the dollar change housing prices?
The price of the dollar has a great impact on all financial markets. The upward trend of this American bill along with the increase in inflation in recent years has also moved the price train in parallel markets, but this effect can be seen in a shorter period on markets such as gold and coins.
The dollar is considered a short-term stimulus for the price of gold and domestic coins, and it has a greater share than the world currency. But these studies show that the impact of the dollar on a market like housing takes more time. With the increase of inflationary expectations and the rise of exchange rates, coins and gold and even cars are easier and cheaper markets for buyers to enter.
A market such as housing, where the cost of entry and liquidation time is higher, shows a slower and more fluctuating movement. Of course, as it was said, the dollar is not the only factor affecting this market, and the price of land and construction materials has been a strong driver to influence this market in recent years.
The dollar was worth about 25 thousand tomans in the middle of August 1400, and according to the report of the Central Bank of Tehran, the average housing price was 30 million and 970 thousand tomans. Today, the 7th of January 1401, more than a year after the four-year period of the 13th government, the dollar is estimated to be over 41 thousand tomans, and the average housing price in November of this year was 46 million and 700 thousand tomans, according to the latest Central Bank statistics.
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