Housing prices are straining to the point of rupture. Will a so-called real estate bubble arise in Slovakia? – TVNOVINY.sk

Housing prices are straining to the point of rupture. The European Central Bank warns of the real estate bubble. In the euro area, real estate prices have risen the most in 16 years. Everyone who has been helped by the bank to own their own home should be on the lookout. Cheap loans don’t have to be here forever.

The pandemic started people’s desire for their own housing. Real estate agents have learned to sell even during the lockdown. Real estate tours have moved into the virtual world thanks to special cameras or drones.

The pandemic has changed the real estate market across Europe. No new projects. There are no construction workers. The same goes for the material. Housing supply is low, while demand is extra high. The result? Real estate market prices have skyrocketed.

The European Central Bank warns of the risk of a real estate bubble. Prices are said to have risen the most since 2005. Indebted households in particular should be on the lookout. If they have a short loan fixation period, they may be surprised by an unexpected rise in interest rates. In the worst case, they may not be able to repay their growing debt.

You can find out how other countries in the European Union are doing from Marek Gudiak’s report.