Houses for sale in Lagos and Abuja lately suffered a major setback in demand, Nigeria is not only the exception, according to the National Association of Realtors in the US, home prices in the United States have been on the increasing side for more than 5 years in a role in the US. While that is good news for home sellers, home buyers are now having a tough time finding homes they can afford. According to the association, “cities across the U.S are facing major housing shortages, which mean buyers have to compete for homes with bidding wars and offers well above asking price. Builders aren’t building enough houses to keep up with demand and current homeowners are hesitant to list their properties because they are worried they won’t be able to buy a new home. Making matter worse, rents have also been on the rise, which means it’s harder for potential buyers to save up for a home in the first place. Even though the Federal Reserve has begun raising interest rates, mortgages have been hovering below 4% recently.”
Low demand for houses for sale in Lagos and Abuja could be attributed to individuals finding it difficult to invest in real estate due to the low economic activities, job losses and high inflation due to the impact of the recent recession that engulfed the country. However, an interview with Ruth Obih, lately, the MD/CEO of 3Invest Limited, a real estate marketing advisory and consultancy firm has insisted that the recession period is the planting season for real estate investors in Nigeria as she advised people not to keep money in bank at a time like this because it will be losing its value but rather use the money to invest in an asset like real estate market; which is not really down compared to other asset markets.