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Monday, June 17, 2024

Real estate. Credits. A moment of hesitation on the market. “Further decline is expected”

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The value of housing loans granted in April increased by 93.2 percent year-on-year, reaching PLN 6.77 billion, the Credit Information Bureau (BIK) reported. However, compared to March, there was a decline – both in terms of the number and value of liabilities incurred.

BIK data shows that since the beginning of the year, the value of loans granted has increased by 204.4%. up to PLN 33.93 billion. At the same time, in April, the value of loans decreased by 12.1% compared to the previous month.

The number of housing loans, compared to April 2023, increased by 66.8% in April 2024, but month to month, i.e. compared to March 2024, it decreased by 11.5%. – up to 16.4 thousand Since the beginning of the year, the number of loans has increased by 150.3%. up to 81.7 thousand compared to data from 2023.

Higher creditworthiness

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“The still high sales compared to the first half of last year are influenced by higher creditworthiness. This was mainly due to the real increase in wages (approx. 10%) and the stabilization of interest rates at a level of approximately 1.0 pp. lower than in last year,” it was written in the comment.

This, in turn, directly translates into a higher value of the housing loan granted. In April this year its average amount was PLN 413.1 thousand. PLN and was 15.8 percent higher amount than last year,” we read.

A big drop from the record month

“In April this year, compared to the historically record-breaking January this year, the value of mortgages granted decreased by approximately PLN 3.53 billion. The lack of new applications from last year's program (2% Loan) is also visible in the number of people applying for a housing loan – in April this year, there were 32.36 thousand of them compared to 46.34 thousand in December 2023. Until the launch of the new program (announcement of Apartments for starters), a further decline in lending should be expected in the following months,” BIK reported.

“We estimate that the lack of the program may reduce lending by approximately PLN 4-4.5 billion compared to January this year. However, the decline in lending may be partially compensated by housing loans taken out by people who, as a result of the still rising real estate prices, will accelerate their decision about the loan, and for formal reasons they cannot be beneficiaries of the new program. The introduction of the new government program may stimulate the increase in real estate prices,” it added.

Main photo source: Shutterstock/ Fotokon

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