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According to a population survey commissioned by Swedbank, 4 out of 10 people in the country expect their home value to grow in the next three years. At that time, one in five residents believes their home prices will drop. Compared to the survey conducted in the spring of last year, the optimism of the population decreased, in 2019. At the beginning of the year, one in two residents (50%) expected an increase in the price of housing.
“The prolonged pandemic and the quarantine introduced in the country for the second time this year reduce the optimism of the population due to changes in the price of their homes. However, it should be noted that this is primarily an emotional assessment of the population. As experience so far shows, although the first spring quarantine affected housing demand, it did not have a significant impact on house prices, ”says Pavel Ladziato, director of retail banking at Swedbank.
It points out that the population’s access to housing has increased. According to Swedbank, home affordability increased significantly in the third quarter of this year due to stable home prices, low interest rates, and faster income growth.
According to a Swedbank survey, the majority of the population (23%) expects moderate growth in house prices and believes that house prices will rise to 5% in the next three years. At the time, one-tenth of the population believed that their home price should increase by as much as 10 percent. Another 6 percent. expect more than 10% house price growth.
“Although the country’s capital, Vilnius and other large cities in the country, has the highest demand for housing, it has a higher demand of more than 10%. Smaller city residents are more likely to expect house prices to rise. Residents of both large cities and rural areas often indicate that they expect a moderate price increase of no more than 5 percent, ”says Ladziato.
According to a Swedbank spokesperson, the coronavirus crisis had a direct impact on the increased sense of uncertainty and increased the number of pessimists compared to 2019. the beginning.
According to a Swedbank survey, currently 6% Lithuanians believe that their home price will decrease by more than 10% in the next three years. By comparison, in the spring of 2019, only 2 percent of those residents thought their home prices would drop by more than 10 percent.
“The proportion of the population that believes that the price of housing will not change has also increased. Currently, the proportion of that population is 18%, compared to 14% 1.5 years ago. Residents thought that the price of your home would not change in the next three years, ”says P. Ladziato, Head of Private Customer Service at Swedbank.
