Mild downturn on real estate market seen as likely ({{commentsTotal}})

Business
Business

Transaction volume declined slightly on the real estate market in the first part of 2015 due to price pressure from Tallinn and Tartu, but experts say the market could still do with some cooling off.

"The number of properties on the market started increasing early last year and the number of transactions in the second and third quarter of 2014 dropped significantly. Prices went past what potential buyers could afford,“ Tõnu Toompark, a real estate consultant, told ERR radio.

He said Tallinn and Tartu should cool off.

"Considering the general state of the economy and sense of security, I would ask whether the apartment market has to be so active. It would certainly be good for market health if the price rise would abate. Tallinn prices were 12 percent more in the fourth quarter than they were at the same time in 2013, which is a very large amount."

The average loan size increased last year - 8 percent, to 58,000 euros at Swedbank, the biggest mortgage lender on the market - but the number of borrowers stayed constant.

 



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