Apartment Prices Spiral Upwards While Sales Drop (2)
A real estate price index created by website kv.ee shows prices are continuing to increase despite the number of sales dropping the Estonian housing market.
The index, which shows the prices of apartments on sale, has increased by 19.6 percent since August 2013, and 1.6 percent in the last month, kv.ee said.
Sellers usually ask 10-20 percent more that the actual property is worth due to emotional over-evaluation in hope of finding a buyer willing to pay.
The number of transactions has already decreased while the number of new listings has increase by 20 percent in the last six months.