Forecasts for the housing market. Look for opportunities. There will be a lot of them because inflation keeps prices down, and weakening creditworthiness weakens demand [9.11.2022]
The real estate market will soon face a reshuffle. We should expect declines next year, but it is difficult to say what exactly we will witness. On the one hand, home prices are constantly strengthened by rising inflation, but on the other hand, they are hampered by the decreasing creditworthiness of customers.
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The situation on the real estate market is changing dramatically due to cyclical increases in interest rates. The effect of NBP activities is, inter alia, a strong reduction in the creditworthiness of Poles.
The statistics provided by PKO BP show that in the period from January to April 2022 the value of granted housing loans decreased by 15.5%. y / y At that time, the number of loans granted also decreased – by 24.8%. y / y According to PKO experts, the declines are mainly due to deteriorating consumer sentiment and lower creditworthiness of households.
In May this year. the value of inquiries about mortgage loans decreased by 51.1 percent. y / r and this is the lowest reading ever.
– Currently, the biggest problem of the real estate market is obtaining financing by clients who do not have cash. Those who are not discouraged by high interest rates often have to postpone the purchase of the premises anyway due to insufficient creditworthiness, which decreases from month to month. As a result, for developers, investment costs increase, and the number of consumers who have real purchasing capacity and could afford to buy a flat decreases, says Karolina Opach, sales manager at Q3D Locum.
The lower demand from clients has very serious consequences for developers, who are already facing a significant drop in sales of constructed properties.
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