We can expect a very strong year in the home loan market . This is supported by the MNB’s statistics on the household sector, which was cleared of seasonal fluctuations published earlier today, according to which in the first quarter of 2015, financial service providers issued approximately $ 69 billion in new mortgages, ie real estate purchase loans.
This is approximately 150% of the total amount of housing loans granted in the same period of the previous year, and the volume of new real estate purchase loans is expected to exceed HUF 300 billion for the whole year.
How do we interpret this data?
According to experts, healthy growth would require around $ 500 billion a year in home mortgages, which is still a relatively large jump, but will represent a significant increase over the 2014 value of $ 238 billion in real estate loans, according to the MNB.
The pre-crisis period of around $ 800 billion a year in new mortgage contracts is unlikely to return, but in retrospect, and given the market potential, such a value cannot be sustained even in the short term.
What is remarkable over the last two years is the pace of development, even though we can speak of relatively low mortgage base data.
In addition to the number of mortgages approved for real estate, the amount of mortgages per contract has also increased since 2013. The latter was HUF 4.6 million by 2014, which is HUF 800 thousand higher than in the previous year. In 2014, the proportion of state-subsidized housing loans was 20% of the number of contracts and 24% of their amount.
Here are some statistics specific to the market
According to data published by the Central Statistical Office (CSO), the total mortgage loan market (including foreign currency loan placements) released in 2014 exceeded the number of real estate loans granted, exceeding HUF 54 thousand, totaling HUF 244 billion. As a result, the number of real estate loans increased by 32% and their amount by 56% compared to the previous year.
The outlook for 2015 is encouraging in the light of 2014 data, as compared to first-quarter 2014 home mortgage loans (23,000 mortgages totaled HUF 101 billion), the second half saw a significant increase (30,000 real estate loans, up 31%, and $ 144 billion, up 42%).
The data of the HCSO show slightly different data compared to the MNB, but the trend there is equally encouraging. Approximately 74,000 home loans amount to HUF 254 billion, which represents a 61% increase in real estate loans and a 51% increase in the amount.
Market participants are optimistic about the expected developments in the mortgage market. According to a recent analysis by a leading bank, the mortgage credit market could show strong double-digit growth in 2015, which could mean an annual growth of up to 30-50 percent.
The fact that events in the real estate market have also accelerated
The Good Finance Bank Rules are not expected to significantly change the course and length of administration. The fact that events in the real estate market have also accelerated also generates this development. While previous years have shown that the winter months are generally quiet, January and February 2015 have been the two strongest months since the crisis.
If you are planning to take out a home loan to buy a property, be sure to read our “Buy a property home loan ” menu. There are many essential questions to be answered.