The Cyprus news media just published the median house price figures for November 2007. The source of this information comes from one of the larger marketing companies that operate as an estate agency but are not a licensed estate agency. This company arrives at data from the houses they sold during this same period. There are numerous marketing agencies, developers and estate agents all selling homes so I don’t see how one marketing company can determine accurately what the median house price is for the whole country.
They claim that house prices jumped 21% in November over November last year. This shows that the particular company did well, but it is not a valid indicator of the market since the hundreds of sales that other estate agencies and marketing firms finalized were not considered. Any median home estimates reported by the media or by any other agency should include all variables such as: how many houses the company sold, listing price, selling price, type of home, and other factors in relation to all the other homes on the market and sold in Cyprus.
An agency that does not stand to gain from the median price report should be responsible for acquiring the vital statistics. The method currently in place needs an overhaul even though it is a fairly new method and the only gauge in Cyprus. A legitimate, unbiased method of determining the median home prices needs to be created by either a reliable government agency or by the E.U since it’s their citizens who will be misled.
In the US, there is an act known as the “Federal Housing Enterprises Financial Safety and Soundness Act of 1992” that works within the Department of Housing and Urban Development that is responsible for ensuring that Fannie Mae and Freddie Mac who provide information on mortgages obtained are properly capitalized and that they operate in a safe and sound manner. Fannie Mae and Freddie Mac are government-sponsored enterprises and chartered by Congress and quarterly house price indexes for single-family detached properties are based on their data. This method is specific, accurate, regulated and provides an unbiased estimate on a certain type of property and every property on the market that fits that description is included, not just from one particular agent or marketing company. The method currently in use in Cyprus is not a valid gauge and the company’s numbers are definitely suspect which does not help anyone except for the marketing company itself!
Published Sunday, December 30, 2007, 1:38 AM by Cleo Shahateet
Filed under: Median House Price in Cyprus, Cyprus news media, Property in Cyprus
Comments
jaquline said:cyprus property are over priced .everyone has become greedy sellers,agents and developers.There are too many new developments on the market ,which means resales are not keeping there value .wHY SHOULD YOU BE ABLE TO BUY A HOUSE AND AFTER 2 YEARS EXPECT TO SELL IT AND GAIN 100 PER CENT PROFIT.iT IS THE GREEDY DEVELOPERS AND ESTATE AGENTS THAT HAVE CAUSED OVER PRICING OF PROPERTIES IN CYPRUS .IF YOU DONT BELIVE THIS THEN LOOK AT THE CYPRIOT EARNINGS AND COST OF LIVING. August 18, 2008 8:38 PM | |
Cleo Shahateet said:This is a worldwide trend that has been going on for this whole decade but what you are seeing now is the prices are leveling out to where they should be. The prices are going down but in a small market like this, they will only go down so much. It is definitely a buyers market and that means it’s a good time to buy! September 25, 2008 5:08 PM | |
shazia said:House price in Cyprus is very reasonable. Regard December 12, 2008 12:09 PM | |
Qaisera said:Price of house in Cyprus is very better. May 7, 2009 11:38 AM |
