The stagnation in the real estate market will last until the end of 2013, whereas housing prices will not change in the nearest years. Such is the opinion of the majority of commercial banks that participated in the survey organized by the Bank of Lithuania.
According to the data of the survey conducted in April 2012, almost two-thirds (63,6%) of bank employees in management positions are certain that it is not worth to expect the recovery in the domestic real estate market until the very end of 2013. The majority (58,3%) of participants of a similar survey conducted six months ago expected that the market will recover already at the end of 2012.
According to the latest survey, around 70 per cent of banks are of the opinion the prices will remain stable that this year. Still, price expectations of a number of banks are changing. Over six months, the share of bank representatives stating that housing prices will increase this year declined from 33,3% to 27,2%. A year ago, the growth of prices was expected by as much as 47,2% of banks that participated in the analogous survey. Bank employees projecting an increase in real estate prices stated both this year and last year that it will not exceed 10 per cent.
According to the latest survey, over six months the share of bank representatives expecting a fall in real estate prices also declined from 11,1% to 3,0%. None of commercial bank representatives expected a fall in real estate prices during the survey conducted a year ago.
Source: http://www.lb.lt/survey_banks_postpone_the_recovery_of_the_real_estate_market_to_the_end_of_2013