Is the housing market overheating?
housing affordability in Estonia has improved, compared with the peak of the
last real estate boom, it has stayed at the same level for the past four years.
confidence in purchasing or building a home has
improved in recent years.
are more responsible in borrowing than ten years ago, and their risks are lower than
in the last boom period.
Last year, prices of apartments in Estonia exceeded
the peak of the 2007 real estate boom. However, compared with the peak of the
last real estate boom, housing affordability in Estonia has improved. Ten years ago, the
average net wage growth could not keep up with the average apartment price
growth, which was more than twice as rapid as the growth of the average net wage
making the purchase of real estate for consumers less affordable. Currently, the overall
situation on the housing market is more favourable for homebuyers and their
risks are lower than ten years ago. Households’ confidence in purchasing or
building a home has improved in recent years, and we expect that demand for
housing should remain high, at least in the near future.
For more information please contact Ms. Marianna Rõbinskaja,
+372 888 7925, email@example.com.
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