Rising Prices Bring Tallinn Real Estate Market Close to Stalling
Apartment prices have been increasing faster than purchasing power, and the market is seizing up, writes daily Eesti Päevaleht.
Prices are up 25 percent compared to levels 12 months ago, says the daily, while supply has increased from 5,500 to 7,000 thanks to homeowners having paid off mortgages and listed their properties.
Transactions on the other hand are down 14 percent from May 2013. Real wages have managed to climb back only to 2007 levels.
The daily was reluctant to make long-term projections, but did say the confidence was high that the market would start to cool.