Price bubble is inflating in residential real estate market, says NBS

A price bubble is inflating in the residential real estate market and the risk of price correction is growing, reckons the central bank NBS. Prices grew at a double-digit pace in 2020-21 and housing affordability fell. Price-to-rent and price-to-income ratios as well as real prices indicate a price bubble. When the previous bubble burst in 2009, prices took ten years to recover to previous levels. Developers and realtors do not expect prices to fall due to low supply, high demand, and cheap mortgages. However, housing construction is accelerating and mortgage rates are rising.

(dennikN.sk)