Turkey house prices fall in real terms, sales decline

House prices in Turkey fell in real terms, the central bank said on Monday. Sales of new homes declined.

Prices dropped by 2.69 percent during September compared with a year earlier, when including the erosive effects of inflation, the central bank said in a monthly report on Monday. Prices increased by 6.32 percent in nominal terms, but fell by 1.12 percent in Istanbul, Turkey’s largest city, it said.

Turkey’s real estate sector is among the worst affected by a currency crisis last year that pummeled economic growth and consumer demand. The government instructed state-run banks to slash interest rates on mortgages to help constructors sell a mounting stock of new housing.

Prices climbed by 0.84 percent in September on a month-on-month basis, the central bank said. That was the slowest increase in three months.

The Turkish Statistical Institute said in a separate report on Monday that sales of homes fell by an annual 2.5 percent to 142,810 units in October, reversing two-straight months of advances. Sales via mortgages surged 525 percent to 50,411 units, but sales via other means dropped 33 percent to 92,399 units.

Sales had climbed by an annual 15.4 percent in September.