The housing market is stabilizing and that do mortgages
Banks and housing savings banks issued 217 billion kroner in mortgages in 2022, about 60% less than in 2021. This is indicated in one of ČSOB bank studies. There are several reasons for this decline: rising interest rates, inflation, concerns about rising in energy prices, saturation of demand, and a slowdown in real estate price growth (in 2022 growth was 12 percent). In 2022, domestic banks granted housing loans in the amount of 217 billion kroner, being a 40% decrease compared to 2021, which is when extreme growth was recorded. Martin Vašek, CEO of Hypoteční banka and ČSOB Stavební spořitelna, also predicts a similar development to this just past in 2023.
The decline in demand has affected both houses and apartments, and demand for recreational facilities has stopped. This has resulted in a significant slowdown in property price growth. The exception is land, where although price growth has slowed, demand has not decreased.
2023 will be a year of continued market stabilization. Inflation seems to have peaked, and its rate will gradually decline. Stagnation in mortgage interest rates can also be expected. In terms of the volume of mortgages disbursed, a stable situation at 2022 levels can be expected. Continued recovery can also be expected in the housing savings sector, where the strong tradition of the product will be complemented by attractive interest rates that will motivate potential savers.
Sources: https://www.camic.cz/ ; https://www.csob.cz/
Sources of images: https://pixabay.com/; https://storyset.com/
