House prices in Romania to lower

Prices on the Romanian residential market could lower in the upcoming period and will be regulated by homes' degree of accessibility instead of the balance between supply and demand, according to real estate network RE/MAX.

"In the following five years, the Romanian market will be healthier. We'll see price adjustments both for old homes and new, as prices shouldn't be regulated by the supply and demand ratio. On a healthy market, prices depend on the degree of accessibility upon acquiring a home," Charles Lemire, managing director of RE/MAX Europe, told Mediafax.

He also added that the time required to sell a home in Romania will increase.

"In other western states, a home may be up for sale for an entire year, which is normal. The fact that a home is sold within five days indicates a market dysfunction that will lead to artificially increased prices. In Romania, the time required for a home to sell will increase in the following period," Lemire said.

In his opinion, the Romanian market will have a normal evolution, as supply and demand will increase along with financing possibilities.

"Worldwide, Eastern Europe is the only market rising. The United States and Western Europe are declining, Central Europe is stable. Investitures will come to Eastern Europe, including Romania, which will boost supply. As far as demand is concerned, it will continue to rise, as many Romanians are coming back to the country and wish to buy a home and also, many Romanians living in Romania, plan to move house," the RE/MAX official said.