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The journalists of the program “Karštai su tv3.lt” were more interested in this situation.
The apartment went up in an hour
Indre, who helps his sister find an apartment in Vilnius, says that when inspecting the apartments, clients are pressured not to take more than fifteen minutes, and another twenty minutes to decide.
“There were two such situations, one very recently, when after finding a suitable apartment and calling the agent after those twenty minutes to say that we would like to continue working and possibly make that crucial deal, we heard that the price had already gone up. because there are other people buying more expensive ”, said Indre.
PHOTO GALLERY. The Vilnius neighbor, who was looking for a house, was left without a word: “For an hour, the apartment became 4 thousand more expensive. euros “
The sisters decided to accept a price increase because they both liked the apartment.
“An existing or non-existent mystical client also raised it and that game lasted about an hour. In an hour, the apartment went up 4 thousand euros and we simply decided not to continue with such a nervous war, ”Vilnius said.
The real estate market is heating up
Furthermore, it is no longer sufficient for the seller to pay an advance; before that, clients have to pay real estate agents for the apartment reservation. Experts acknowledge that such situations indicate that the housing market is currently hot.
“The real estate market is currently heating up, so to speak. There is a historically very active market. And, well, we see growth in house prices accelerating for the third consecutive quarter,” said Vaidotas Šumskis, an economist at the Bank of Lithuania.
According to the economist, the rise in house prices is mainly due to very rapid long-term increases in wages, while interest rates on loans were low at the same time.
“This year alone, since the beginning of the year, we have seen such a trend that wages are growing a little slower than house prices. So what does that mean? That during those few years, residents have really had a very good opportunity to buy homes on acceptable terms, ”said the economist in the program.
Are prices going up due to construction costs?
Builders, increasingly driving up apartment prices, argue that the price increase is strongly driven by rising construction costs.
“It is above all that the prices of the plots have grown a lot and there is practically no supply. Below are the prices of the materials. There is a great shortage of employees ”, explains Domas Dargis, CEO of UAB Eika.
Real estate analysts say August saw the biggest change in apartment prices in metropolitan areas in 12 years, with nearly 4,000 apartments sold. During the first quarantine, they experienced that incomes were not declining, there was no shortage of jobs, and residents were looking for bigger and more cozy houses, so the construction of their own houses was also booming.
“People get rich and especially during a pandemic, when we are at home, working from home, teaching our children from home, we need more space. These people naturally are looking for more spacious homes, so we see that this year all statistical indicators will be exceeded, especially for the housing segment, ”said Raimondas Reginis, Ober-Haus Head of Market Research for the Baltic States.
House prices are higher than they could be
According to the Bank of Lithuania, house prices in our country are about 7 percent higher than they could be. But housing in Lithuania is overvalued at least throughout the European Union.
“Still, in 2008 we had this figure above 25 percent, between 25 and 50 percent. This is up to such a clear view, a clear assessment that the housing market is already bubbling, still hot, in such domestic terms, we couldn’t say, ”says V. Šumskis, an economist at the Bank of Lithuania.
After the last financial crisis, when many people who lost their jobs could no longer repay their mortgage loans, the Bank of Lithuania adopted regulations on responsible lending, which limit the willingness of the population to borrow and the willingness of credit institutions. to divide the loans to the left and right.
“We cannot have any doubt that without these provisions, the situation in the real estate market would be much more hostile than it is now,” the economist is convinced.
See the full report in the video at the beginning of the article.
Watch the program “Karštai su tv3.lt” every Monday at 19:30 on TV3 television.
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