Russia (bbabo.net), - A decline in housing prices in 2022 should not be expected. Apartments rose in price not only due to high demand (many blamed the rise in prices on preferential mortgages), but also due to the transition of developers to project financing (banks, unlike equity holders, give money to developers at interest), an increase in construction costs due to shortage of workers (many migrants, for example, retrained in incredibly popular couriers now).
Reducing house prices can be achieved by significantly increasing the supply of housing. But this is still a long way off: this year the volume of new buildings commissioning is breaking records, it is expected that at least 90 million square meters will be built in a year. m. However, the volume of multi-apartment housing under construction has been at about the same level for about six months - about 97-98 million square meters. m, about as many houses are rented as new ones are being launched. To a large extent, the total number of new buildings is growing due to individual housing construction.
The abolition of preferential mortgages has somewhat reduced the demand for loans and, accordingly, for housing, however, for now, buyers are ready to issue loans at increased rates, fearing that in the future they will grow even more. A further sharp rise in mortgage rates is unlikely to happen or it will be short-lived, experts say.
High house prices, the lower range of which depends on the cost of construction, together with high interest rates can lead to a drop in demand and problems in the construction industry. First, it is unprofitable for banks, so the market can adjust rates. Secondly, in this case, the Ministry of Construction is discussing further measures to stimulate demand and increase the affordability of housing.
The monthly mortgage payment is growing following prices and rates, according to the NKR, in October this year, mortgages were issued for an average of 20.9 years, which is almost 4 years more than at the beginning of 2019. By the end of 2022, the term will reach 23 years, experts predict.
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