According to Bigbank's loan portfolio analysis, in July the number of both loan applications and concluded housing loan agreements increased by around 50% compared to the same period last year, with the average loan amount rising to a record 168,063 euros. /nginx/o/2024/03/13/15941608t1he3aa.jpg)
Housing loan. Photo illustrative. Photo: Sander Ilvest
According to Bigbank's loan portfolio analysis, in July the number of both loan applications and concluded housing loan agreements increased by around 50% compared to the same period last year, with the average loan amount rising to a record 168,063 euros.
According to Jonna Pehter, Head of Bigbank Eesti, all indicators related to housing loans have increased significantly since spring, but the average loan amount has increased especially significantly in recent months. "If in June the average loan amount exceeded 150 thousand euros for the first time, then in July it increased by almost 12% and reached 168 thousand euros," Jonna Pehter, Head of Bigbank Eesti, said about the latest changes in the housing loan portfolio, adding that the significant increase in the average loan amount is, among other things, a sign of rising incomes of home buyers.
According to the Bigbank boss, the current market is driven by pent-up demand over the past year and a half, coupled with rising incomes. “Buyers are also encouraged by the news of the past few weeks, which reflects the market’s expectations for a fall in Euribor,” Pehter explained.
"Housing is being actively purchased despite the wonderful summer weather, which in previous years led to greater calm in both transactions and loan agreements," said Pehter, noting that, compared to July last year, the total volume of loans provided has more than doubled. Most loan agreements are still concluded for the purchase of housing, and agreements concluded for the purpose of refinancing old agreements account for only ten percent of the total.
