Bigbank: the number of apartment transactions has stabilized at the pre-buying fever level

In November, Bigbank concluded home loan agreements in the same amount as in October, but the average loan amount that had risen sharply last month fell back to 115,000 euros.

"The autumn real estate market has proven to be stable at a new level. There are certainly fewer transactions than at the peak of last winter, but the market is functioning. The number of contracts was, for example, at the same level as November of last year, a period that was followed back then by a 3-4 month buying frenzy," commented Jonna Pechter, Head of Bigbank Estonia, noting that by now there has been a noticeable decrease in loan applications from active small investors looking to invest money in real estate, but those seeking a new home for themselves continue to act actively.

According to Pechter, the return of the average loan amount to the 115,000 euro level was also as expected. "New developments and apartments sold in them have become scarcer on the market, which is why the share of transactions conducted with older and slightly cheaper secondary market apartments is growing. Thus, the average loan amount is also smaller in situations where actual transaction prices have practically not fallen," explained Pechter, describing how the prevailing market trend affects the statistics.

Home loan borrowers continue to show increased interest in special payment schedules, which allow paying the bank only interest for the first ten or even twenty years. "In November, nearly a quarter of home loans from Bigbank were issued with special payment schedules," said Pechter, noting that home buyers continue to see Bigbank's special schedule home loans as protection against high inflation.