In May 2022, the price growth trend slowed, but the average time period from the appearance of the offer to the completion of the sale began to lengthen. Is this an indication that high interest rates, low real income, official barriers to lending and other unfavorable conditions have led to the onset of the crisis in the housing market? Will KNF Soften Its Mortgage Recommendation To Stop Recession?
This year will be one of the most difficult years in the real estate market in Poland. According to SonarHome data, since the beginning of the year, prices for apartments in the largest Polish cities have already increased by 5%, and the time of their sale has stretched to 90 days.
The series of the fastest rate hikes in history is underway, and the first cuts can be expected in the fourth quarter of 2023 or even early 2024, indicating that the demand for credit will continue to decline. The only thing that could improve the situation is to soften the recommendation of the Polish Financial Supervisory Authority, which was requested by the Polish Association of Developers. Is the previous cycle in the real estate market about to end?
With subsequent increases in interest rates, the number of people who will be able to take on the loan will systematically decrease. And the reason is not only high premiums, but also creditworthiness calculated each time before the bank gives a loan.
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