Turkish home sales drop for fourth-straight month

Sales of homes in Turkey dropped for a fourth consecutive month in November after the lira slumped against the dollar and the central bank hiked interest rates.

Sales fell by 5.9 percent compared with October to 112,483 units, the Turkish Statistical Institute said on Tuesday. On an annual basis, they declined by 19 percent.

Purchases of homes financed by mortgage loans slumped by an annual 44 percent to 24,450 units. They dropped by 4.4 percent month-on-month.

Turkey’s lira has lost about a quarter of its value against the dollar this year. Losses accelerated in August, prompting the central bank to hike interest rates the following month. It raised its benchmark interest rate again in November, taking it to 15 percent from 8.25 percent two months earlier.

Of total houses sold in November, 36,658 units were sold for the first time, a decrease of 25 percent on the same month a year earlier. New homes sold in October totalled 36,976 units.

Turkey has introduced tax breaks, low-cost loans from state-run banks and other incentives to boost the housing market. Construction has helped drive economic growth in the country in recent years and several large companies in the sector have close ties to the government of President .

Read original article here.